Sen. Thom Tillis, R-N.C., said Tuesday he will continue to block Kevin Warsh’s confirmation to lead the Federal Reserve after a heated hearing, arguing the process cannot move forward amid an ongoing Justice Department investigation involving Fed Chair Jerome Powell.
“At the end of the day, there’s only one thing that solves this problem, and it’s getting rid of the bogus investigation that started without the president’s knowledge and has created this situation,” Tillis told FOX Business outside the hearing room.
“If we want to get Mr. Warsh confirmed, we need to drop the investigation,” Tillis added, saying it could be done in “five minutes” and urging the DOJ to act.
THE ONE LINE IN WARSH’S TESTIMONY SIGNALING A BREAK FROM THE FED’S STATUS QUO
Tillis, who met with Warsh in March, praised the former Fed governor’s credentials and signaled support during the hearing.
“You have extraordinary credentials – they’re impeccable. The problem I have is where we are right now,” Tillis said, pointing to the Justice Department probe involving Powell.
On Jan. 11, Powell confirmed that the DOJ had opened a criminal investigation into his congressional testimony related to the renovation of the Federal Reserve’s two historic buildings on Washington, D.C.’s National Mall.
Powell called the probe “unprecedented” in a video statement and framed it as part of what he described as ongoing threats from President Donald Trump against the central bank. His public response – after days of private consultations with advisors – marked a sharp departure from his typically measured approach.
The investigation marks one of the most challenging stretches of Powell’s eight-year tenure leading the Fed.
FEDERAL RESERVE CHAIR POWELL UNDER CRIMINAL INVESTIGATION OVER HQ RENOVATION
The renovation of the Federal Reserve’s two main office buildings in Washington’s Foggy Bottom neighborhood is estimated to cost $2.5 billion and is being funded by the central bank itself, not by taxpayers.
The Fed is self-financing and does not rely on congressional appropriations to cover its operating expenses, which include employee salaries, facilities maintenance and the current renovation. Its primary income comes from interest earned on government securities and fees charged to financial institutions.
In June 2025, Powell told members of the Senate Banking Committee, “There’s no new marble. There are no special elevators. They’re old elevators that have been there. There are no new water features. There are no beehives, and there’s no roof garden terraces.”
FROM MORTGAGES TO CAR LOANS: HOW AFFORDABILITY RISES AND FALLS WITH THE FED
Powell also told lawmakers that no one “wants to do a major renovation of a historic building during their term in office.”
“We decided to take it on because, honestly, when I was the administrative governor, before I became chair, I came to understand how badly the Eccles Building really needed a serious renovation,” Powell said, adding the building is “not really safe” and not waterproof.
He also said the cost overruns are due, in part, to unexpected construction challenges and the nation’s inflation rate.
The project is expected to be completed in the fall of 2027, and Washington-based employees are slated to begin working in the building in March 2028.
Warsh, who was tapped by Trump in January to succeed Powell, is poised to take the helm of the world’s most powerful central bank at a turbulent moment for the Federal Reserve.
Aside from the probe involving Powell, the Supreme Court is weighing limits on the Fed’s independence and rising cost-of-living pressures are testing Trump’s economic agenda.
In short, the stakes for the next chair are intensifying.
Read the full article here
