US Senate Move Clears Path for Fed Chair Nominee Kevin Warsh

Mintesinot Niggusie

The US Senate process for Federal Reserve chair nominee Kevin Warsh has moved forward after Republican Senator Thom Tillis said he will no longer block the confirmation, following the US Department of Justice’s decision to drop an investigation into Federal Reserve Chair Jerome Powell. Tillis had previously pledged to halt any Federal Reserve nomination from advancing while the probe into Powell remained open, a position that had effectively stalled the confirmation process for months.

The investigation, opened in January, focused on Powell’s oversight of a 2.5 billion US dollars renovation project involving two Federal Reserve buildings in Washington, according to earlier disclosures. With the inquiry now closed, Tillis said he would allow the nomination process to proceed, removing a procedural obstacle that had delayed consideration of Warsh.

The shift opens the possibility for Senate confirmation activity to advance by May 15, when Powell’s current leadership term is scheduled to end. Powell had disclosed the existence of the criminal investigation in January. In a video released on a Sunday evening, he described the probe as intimidation and linked it to broader efforts to pressure the Federal Reserve over interest rate decisions.