Thom Tillis steps aside after DOJ closes Powell probe, clearing path for Warsh Fed vote

Senator Thom Tillis has dropped his hold on Kevin Warsh's nomination to lead the Federal Reserve, clearing a major hurdle for President Trump's choice to head the central bank. The North Carolina Republican confirmed Sunday that he would no longer block the nomination, following news that the Justice Department has formally closed its investigation into current Fed Chair Jerome Powell.

Tillis had quietly held up the nomination for months, refusing to allow the Senate Banking Committee to move forward. He never publicly detailed his reasons, but sources close to the senator said he wanted clarity on whether the probe into Powell-centered on allegations of improper political coordination-would result in any findings. With the investigation now closed and no charges filed, Tillis appears satisfied that the central bank's independence remains intact.

Warsh, a former Fed governor and close ally of Trump, has long been seen as a strong contender for the role. His nomination sparked debate over the direction of monetary policy and concerns about political influence at the Fed. Tillis's support was seen as pivotal, given his influence on financial regulation issues and his tendency to break with party leadership on institutional matters.

The Justice Department's decision to drop the probe was announced late Friday, with officials stating they found no evidence of wrongdoing by Powell. That conclusion appears to have given Tillis the reassurance he needed. In a brief statement, he said he now believes the nomination process can move forward "without further delay."

With Tillis on board, Senate leaders expect Warsh's confirmation hearing to be scheduled within the next two weeks. While some progressive Democrats have voiced opposition, the Republican majority is expected to push the nomination through with minimal drama. The timing also avoids a prolonged fight during a busy legislative stretch.

This quiet resolution avoids what could have become a broader clash over the Fed's independence-a topic that's drawn scrutiny from both parties in recent years. Tillis has previously warned against politicizing the central bank, and his conditional blockade was seen by some as a rare show of institutional caution from a Republican senator.

For now, the focus shifts to Warsh and how he might shape the Fed's next chapter. If confirmed, he would take over at a time of steady inflation and moderate growth, with markets watching closely for shifts in interest rate policy. But first, the Senate will have its say-now that one senator's quiet pause has come to an end.