Warsh confirmation on the move

The path to confirming Kevin Warsh as the next Federal Reserve chair cleared significantly Sunday after Senator Thom Tillis announced he would drop his opposition to the nomination, removing a key procedural hurdle in the Senate Banking Committee.

Tillis, the North Carolina Republican who had effectively blocked Warsh's confirmation, said on NBC's "Meet the Press" that he received assurances from the Department of Justice that its investigation of current Fed Chair Jerome Powell was closed. The probe, led by U.S. Attorney Jeanine Pirro, examined cost overruns in the Fed's $2.5 billion building renovation project.

"I am prepared to move on with the confirmation of Mr. Warsh. I think he's going to be a great Fed chair," Tillis said, adding that DOJ confirmed "the case is completely and fully settled" and that any future investigation would require a criminal referral from an inspector general.

Tillis had framed his opposition as a defense of Fed independence, calling the DOJ inquiry a "vindictive prosecution" designed to pressure Powell into stepping aside. His shift paves the way for a committee vote Wednesday and moves Warsh closer to replacing Powell before the current chair's term expires May 15.

At his confirmation hearing, Warsh told senators he never promised the White House he would cut interest rates and pledged to be "an independent actor." However, President Trump told CNBC hours earlier that he "would" be disappointed if Warsh did not immediately lower rates — underscoring the political pressure the new chair would face.

Ranking Democrat Elizabeth Warren pushed back, calling Warsh "nothing more than President Trump's sock puppet" and urging Republicans to oppose the nomination on grounds of central bank independence.

The Fed itself meets Wednesday and is widely expected to hold rates steady for a third consecutive meeting, resisting Trump's public demands for cuts.

**What This Means For You:** Warsh's likely confirmation brings a new voice to monetary policy at a critical juncture. Markets will be watching closely for any signal that the Fed's rate-setting independence is shifting. If Warsh leans toward cuts under White House pressure, borrowers could see relief — but it may come at the cost of higher inflation expectations and long-term rate increases.