Sen. Thom Tillis said Wednesday he is sticking to his threat to block President Trump’s pick to lead the Federal Reserve unless the DOJ drops its probe into Jerome Powell.
The Republican lawmaker from North Carolina first vowed to block the confirmation of Kevin Warsh as chair in the immediate aftermath of revelations Powell, the outgoing Fed chair, was the subject of a criminal probe launched by federal prosecutors in Washington, DC.
Tillis told CNBC’s “Squawk Box” Wednesday that he’s “willing to let it play out for the remainder of this Congress, if that’s what’s necessary to get to the truth or to get back to a process that makes sense and that keeps the Fed independent.”
“I’d be one of the first people to introduce Mr. Warsh if we’re behind this and support him, but not before this matter is settled,” the senator added.
Last month, Powell revealed he was the subject of a federal probe into whether he lied in summer 2025 testimony to Congress about the Fed’s $2.5 billion headquarters renovation project.
In the stunning statement, Powell said the threat of criminal charges was retribution for the Fed not slashing interest rates fast enough after months of pressure from Trump, who has blasted the chair as “stupid” and having “mental problems.”
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions – or whether instead monetary policy will be directed by political pressure or intimidation,” said Powell, whose term as chairman expires in May.
Meanwhile, Sen. Tim Scott (R-SC), who oversaw the June hearing at the center of the probe, said Wednesday that he does not believe Powell committed a crime.
Scott, the chairman of the Senate Banking Committee, said he was not aware of any statements made by Powell during last year’s testimony that amounted to evidence of perjury.
During an interview with Fox Business’ Maria Bartiromo, the senator said he didn’t like Powell’s answers, “but ineptness or being incompetent is not a criminal act.”
Republicans hold a slight 13-11 majority on the Banking Committee, which will vote on the Warsh nomination, meaning Tillis could block him if all Democrats oppose the pick, too.
Tillis said he would continue to block any nominees even if the Justice Department offers to toss the probe on the condition that Powell steps down from the Fed board early.
Though his term as chairman expires in May, Powell could stay on as a Fed governor through 2028. He has not yet commented on whether he plans to do so.
“To ramp it down or have it adjudicated, that’s the only way we get out of here as far as I’m concerned in this Congress for the next 333 days,” Tillis said Wednesday. “I know how I would react to this, I’d be there for the remaining two years.”
“They got ahead of their blockers. They didn’t consult with the adults in the room when they decided to do the subpoenas,” said the senator, who is retiring at the end of his term next January.
Tillis added that he reviewed Powell’s answers and wasn’t sure “that any of them were factually incorrect. So I think it’s vindictive. I think it’s frivolous.”
“I think you should go down the dais and ask anybody, any Republican or any Democrat, if they thought there was criminal intent,” he said.
Scott said Wednesday that he expects Tillis will ultimately vote Warsh through, saying there was a 100% chance the nominee would be approved.
