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Fed · Nomination · Powell Investigation · Tillis
Senator Thom Tillis has blocked President Donald Trump's nomination of Kevin Warsh as Federal Reserve Chair, creating a Senate deadlock until a Justice Department investigation into current Chair Jerome Powell concludes, raising concerns over central bank independence.
Tillis, a Republican senator nearing retirement, asserts his position protects the Federal Reserve's independence from political influence, specifically citing a DOJ probe into Powell's testimony regarding the Fed's headquarters renovation. This move represents a rare instance of intra-party resistance to President Trump, who has expressed frustration but acknowledges the difficulty in overcoming this opposition.
The Senate Banking Committee faces an even split, preventing Warsh's nomination from progressing, and a full Senate vote requires unlikely Democratic support. Senate Majority Leader John Thune confirms the White House must address Tillis's concerns.
This standoff is a critical test for Federal Reserve independence, with some market participants welcoming Tillis's firm stance against political pressure on monetary policy decisions.
Tillis Blocks Trump's Fed Pick, Citing Powell Probe(current)