US Stock Market: DOJ ends Powell probe, prompting Tillis to greenlight Fed Chair nominee Warsh

Republican Senator Thom Tillis signaled that he would no longer block the Senate confirmation of Federal Reserve chair nominee Kevin Warsh, following the Department of Justice’s decision to drop its investigation into current Fed Chair Jerome Powell, according to Reuters.

Tillis, who had previously pledged to prevent any Federal Reserve nominee from advancing while the probe remained active, said he is now ready to allow Warsh’s confirmation process to proceed. His shift effectively ends months of uncertainty surrounding the nomination and opens a path for Senate approval before May 15, when Powell’s term as chair is set to expire.

The investigation into Powell stemmed from his oversight of a $2.5 billion renovation project involving two Federal Reserve buildings in Washington. Powell disclosed earlier this year that the Department of Justice had launched a criminal inquiry into the matter. He characterized the probe as an attempt to pressure the central bank, particularly in the context of broader political tensions over interest rate policy.


In March, a federal judge blocked subpoenas issued in the case, concluding they were improperly aimed at influencing Powell’s policy decisions or prompting his resignation. Despite indications from U.S. Attorney Jeanine Pirro that the investigation would continue, she announced on Friday that it was being terminated. She also indicated that the Federal Reserve’s inspector general, already reviewing the renovation project, would take over oversight.

Tillis had emphasized that his opposition was not directed at Warsh personally. During the confirmation hearing, he described the nominee as highly qualified. Warsh, who served as a Federal Reserve governor from 2006 to 2011, has outlined plans to reshape the central bank’s monetary policy framework and to coordinate more closely with other parts of the government on broader economic matters.

With Tillis now backing the process, Republicans on the Senate Banking Committee have sufficient support to move Warsh’s nomination forward despite unified Democratic opposition. A full Senate vote is expected to follow, with Republicans likely to secure confirmation.

The timeline remains tight, as the Senate faces a limited window before Powell’s term concludes, including a scheduled recess period. Historically, confirmations for Federal Reserve positions have rarely been completed in such a short timeframe.

Powell has indicated he would temporarily remain in the role if a successor is not confirmed by the deadline. Even after a new chair is installed, he could continue serving as a governor under his existing term, which extends for another year and a half.

Meanwhile, the possibility of renewed scrutiny has not been entirely ruled out. Pirro noted that further action could depend on the findings of the inspector general’s review, a statement that drew criticism from Senate Democrats, who warned it could signal the risk of future investigations into Federal Reserve leadership.