Republican Senator Thom Tillis of North Carolina has announced his support for Kevin Warsh's nomination as the next chair of the Federal Reserve System board of governors, following the Justice Department's decision to end its criminal investigation into current Fed Chair Jerome Powell [1]. Tillis had previously withheld his support, citing concerns over the investigation's impact on the Federal Reserve's independence, but stated that the closure of the probe and the initiation of an Inspector General's investigation into the Fed's building cost overruns have addressed his reservations [1].
Sen. Tillis described Kevin Warsh as 'an outstanding nominee' and expressed confidence in the Inspector General's ability to conduct a thorough and professional review of the building project, which has experienced cost overruns in the billions of dollars, according to U.S. Attorney for the District of Columbia Jeanine Pirro [1]. Pirro announced that her office would close its investigation as the Inspector General undertakes the inquiry but warned that a criminal investigation could be reopened if warranted by future findings [1].
A spokesperson for the Fed's Office of Inspector General confirmed that an evaluation of the Board’s building renovation project, including an independent analysis of the substantial cost increases, is ongoing. The results of this review will be made available to the public and Congress upon completion, though no further comment was provided at this time [1].
The developments signal a potential shift in the confirmation process for Kevin Warsh, removing a key obstacle and possibly expediting his path to becoming Fed chair. The ongoing Inspector General review and the possibility of renewed investigation underscore continued scrutiny of the Federal Reserve's operations and expenditures [1].
CONCLUSION
Sen. Tillis's endorsement of Kevin Warsh following the DOJ's closure of its probe removes a significant barrier to Warsh's confirmation as Fed chair. However, ongoing investigations into the Fed's building cost overruns mean the institution remains under close oversight, with the potential for further developments depending on the Inspector General's findings.