Tillis says he's ready to move ahead with confirming Warsh as Fed chair
AP News • • business
Key Points:
- Republican Senator Thom Tillis has dropped his opposition to Kevin Warsh's nomination as Federal Reserve chair after the Justice Department ended its investigation into current Chair Jerome Powell's handling of Fed building renovations.
- Tillis cited assurances from the Justice Department that the investigation was fully settled and expressed concerns that the inquiry was being used as a political lever against Powell, potentially threatening Fed independence.
- The Senate Banking Committee plans to vote on Warsh’s nomination soon, despite Democratic opposition led by Senator Elizabeth Warren, who criticized Warsh as overly aligned with President Trump.
- The Federal Reserve is expected to keep interest rates unchanged at its upcoming meeting, with Powell possibly indicating whether he will remain on the Fed board after his chair term ends in May, which would limit Trump’s influence.
- The Justice Department investigation into the Fed renovations, criticized as politically motivated, found no evidence of criminal conduct, but prosecutors remain open to reopening the case if new evidence emerges.
