"No confirmation for Warsh until Trump’s Powell probe rhetoric ends" [Fed Watch]

GOP Sen. Thom Tillis

"Until the criminal probe into Fed Chair Jerome Powell is wrapped up,

I won’t support confirming any Fed governor"

Republican Sen. Thom Tillis said he would continue to block the confirmation process for Kevin Warsh, President Donald Trump’s pick to lead the Federal Reserve, reaffirming his stance. He said he will not support confirming any Fed nominees until the criminal investigation into Fed Chair Jerome Powell is concluded.

According to CNBC on the 10th (local time), Tillis, a North Carolina Republican, told reporters at the Capitol, "No matter what Mr. Warsh says, it won’t change my position."

Tillis has said he will oppose the confirmation of all Fed nominees, including Warsh, until the probe into Powell is resolved. Powell is currently under investigation by the U.S. attorney’s office in Washington, D.C., and he denies all allegations.

Powell argues that the investigation is political pressure stemming from his refusal to accept President Donald Trump’s demands for interest-rate cuts.

"This isn’t about an individual; it’s about process," Tillis said, stressing that "a core principle—the Fed’s independence—is at stake."

He added, "If the market comes to view the Fed chair as someone who moves at the president’s behest, no one can guarantee what the reaction will be."

Beyond the Powell probe, Tillis pointed to another issue the Supreme Court has yet to decide: whether Trump has the authority to dismiss Fed Governor Lisa Cook.

Trump previously sought to remove Cook, citing mortgage-fraud allegations raised by Bill Pulte, head of the Federal Housing Finance Agency (FHFA). Cook also denies the allegations, and her supporters argue she was targeted because she opposed Trump’s demands on rate policy.

Tillis criticized the attempt to oust Cook as "a childish idea," adding that "the person who came up with it should be fired, too."

Still, he spoke favorably of Warsh’s capabilities.

"I’ve watched his work for a long time and I’ve already been deeply impressed," Tillis said. "It’s even more frustrating that I can’t vote because of other issues."

Meanwhile, members of the Senate Banking Committee are also direct witnesses to matters Powell testified about in Congress related to the renovation project at the Fed’s Washington, D.C., headquarters.

"All seven Banking Committee members were there and concluded there was no crime," Tillis said. "Even so, it’s hard to understand why this debate is still dragging on and delaying the confirmation of a qualified nominee."

He continued, "I think it’s because of the judgment of a young federal prosecutor who launched a baseless investigation," adding that "Warsh’s confirmation will only be possible once investigators acknowledge this and step aside."

Separately, Republican Sen. Cynthia Lummis praised Warsh after meeting with him that day.

"We had a very productive and in-depth conversation," Lummis said. "The United States needs a transparent and accountable Fed that doesn’t stifle financial innovation—especially digital assets."

She added that she looks forward to continuing discussions with Warsh on how to modernize the Fed and make it an institution accountable to Congress and the public.

New York=Correspondent Park Shin-young nyusos@hankyung.com