Republican Senator Thom Tillis has raised objections to the appointment of Kevin Warsh as chairman of the Federal Reserve after the conclusion of the federal investigation into Jerome Powell.
Summary
- Tillis has ended her hold on the appointment of Kevin Warsh after the DOJ closed its investigation into Jerome Powell.
- The Senate Banking Committee will vote on April 29, with a full Senate decision expected in mid-May before Powell’s term ends.
According to a statement shared by Tillis on X, the US Department of Justice has completed its three-month investigation into Powell’s involvement in the renovation of the Federal Reserve headquarters, removing a major obstacle that had been blocking Warsh’s way forward.
“I was clear from the beginning: the US attorney’s office investigation into Chairman Powell was a serious threat to the Fed’s independence, and it had to end before I supported Kevin Warsh’s confirmation,” Tillis said.
“I welcome the coroner’s investigation. This is a necessary and appropriate step, and I hope it will be conducted carefully and professionally.”
Holding a seat on the Senate Banking Committee, Tillis was in a position to delay the process by stalling the process or withholding support, which would have prevented the nomination from proceeding to the full Senate.
With his support now, the committee is expected to vote on April 29, and a full Senate vote is expected to follow, possibly during the week of May 11.
Jerome Powell’s current term is set to end on May 15. If confirmed, Warsh is likely to take the role within days, putting him on the US central bank’s list at a time when monetary policy remains under scrutiny across markets.
Policy visibility and crypto exposure
Attention has turned to how Warsh might steer interest rate policy and what that might mean for risk-sensitive assets, including cryptocurrencies. Known for overseeing aggressive rate cuts during his tenure as Federal Reserve governor, Warsh is often considered a hawk, a position that can weigh on speculative markets.
At the same time, political pressure added another layer to the expectations. US President Donald Trump has repeatedly called on the Federal Reserve to cut rates, raising questions about whether the new leadership would lean toward that approach.
Warsh, however, pointed out that policy decisions will remain protected from outside influence, noting that no such pressure has been directed at him.
Financial disclosures have also attracted interest in the digital asset sector. Warsh reported exposure to more than 30 crypto-related investments, including holdings tied to Solana and work linked to limited exchanges such as dYdX.
The portfolio has led some market participants to see him as more familiar with the industry than previous candidates, as his policy stance remains under intense scrutiny.
As the confirmation process moves forward, the focus is now on the Senate vote and how quickly leadership at the Federal Reserve changes once Powell’s term ends.
