A U.S. senator has ended his blockade of President Donald Trump’s nominee to replace Fed Chair Jerome Powell in May.
Sen. Thom Tillis, R-N.C., said Sunday he is willing to end his blockade of Federal Reserve chair nominee Kevin Warsh after the U.S. Department of Justice dropped its criminal investigation of Powell.
CNBC noted that Warsh now has a clear path to replace Powell as the next leader of the central bank when Powell’s term expires in mid-May. The Senate Banking Committee is set to vote on his confirmation on Wednesday. The full Senate could take it up shortly after, CNBC reporte.
With Tillis’s support, Warsh’s confirmation all but assured.
“I am prepared to move on with the confirmation of Mr. Warsh, I think he’s going to be a great Fed chair,” Tillis said on NBC’s “Meet the Press.” “We were very clear that we have assurances from the DOJ that I needed to make sure they were not using the DOJ as a weapon to threaten the independence of the Fed. So this will allow Mr. Warsh to move on with his confirmation on time.”
Tillis’ Vote is Critical
Tillis had vowed to withhold his vote for Warsh, whom he said he supports, before the Senate Banking Committee until the DOJ dropped its investigation of Powell over alleged cost overruns related to renovations at the Federal Reserve building.
CNBC noted that Tillis’ vote is critical to Warsh’s confirmation.
The Banking Committee is composed of 13 Republicans and 11 Democrats and a lone Republican defection would have deadlocked the panel and blocked Warsh from advancing.
U.S. Attorney Jeanine Pirro, the top federal prosecutor in the District of Columbia, announced last week that her office was turning the investigation over to the Federal Reserve’s inspector general’s office.
Tillis said he received assurances that “the only way an investigation would be open would be a criminal referral” from the IG.
“They have made it very clear that the current investigation is completely and fully ended,” he said.
Acting Attorney General Todd Blanche also appeared on “Meet the Press.” He was asked if the DOJ would consider reopening the investigation after Warsh was confirmed. Blanche said the probe now was in the hands of the inspector general.
“If he uncovers evidence of criminal conduct, there is no doubt that we will investigate,” he said.
CNBC noted that Warsh likely will move quickly to implement significant change at the Fed. He said in his confirmation hearing last week that he wants “regime change.” He said he would change the way the central bank measures inflation and how it communicates, among other issues, CNBC reported.
