Tillis Predicts Lengthy Nomination Process Could Limit Warsh’s Fed Chair Role

Republican Senator Thom Tillis from North Carolina has raised concerns regarding Kevin Warsh, President Trump’s nominee for the chair of the Federal Reserve Board of Governors. During an interview set to air on “Face the Nation with Margaret Brennan,” Tillis outlined his hesitation about the nomination process affecting Warsh’s business operations.

Tillis Voices Concerns Over Warsh’s Nomination Process

Tillis reiterated his commitment to oppose any Federal Reserve nominee until the Justice Department completes its investigation into Jerome Powell, the current Fed chair. This investigation stems from Powell’s testimony to the Senate, regarding a significant renovation project of the Federal Reserve’s headquarters.

According to Tillis, once Warsh’s nomination is submitted, it could impose restrictions on his future business activities. “He is going to have to decide whether or not he wants to go through with this,” Tillis said, emphasizing the ramifications of the nomination process.

Stance on Federal Reserve Independence

• Tillis stated he has “no intention” of backing any Fed nominee, including Warsh, until the investigation concludes.
• He underlined the importance of safeguarding the Federal Reserve’s independence from political influences.
• “Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable,” he wrote on social media.

Despite his concerns, Tillis previously acknowledged Warsh’s qualifications, recognizing him as someone with a strong grasp of monetary policy. However, he remains firm in his opposition to any confirmations during the ongoing inquiry.

Investigation Criticisms

Tillis also criticized the U.S. Attorney’s Office in Washington, D.C., led by Jeanine Pirro, accusing them of overstepping in their investigation of Powell. He suggested that the inquiry appears to be driven by ambition rather than proper protocol.

Pirro, a former district attorney in New York and Fox News host, acknowledged that her office sought to discuss renovation-related cost overruns with the Fed before proceeding legally due to a lack of response. She highlighted the independence of the Federal Reserve, asserting that it operates outside congressional funding and taxpayer dollars.

Other Republican Views

• Senator Tim Scott of South Carolina defended Powell, asserting that while he made mistakes, he did not commit a crime.
• Tillis emphasized that several Republican members believe no criminal acts took place during Powell’s testimony.

As discussions continue regarding Warsh’s nomination, the responsibility for holding confirmation hearings lies with the Banking Committee, chaired by Scott. Tillis noted that he would not support Warsh’s nomination until the investigation lapses.

Conclusion

President Trump’s choice of Warsh comes amid controversy, as Powell’s term is set to conclude in May. The prospect of a lengthy nomination process could impact Warsh’s role and decisions moving forward, as noted by Tillis and other Republican lawmakers.