Republican Senator Thom Tillis has lifted his opposition to Kevin Warsh’s nomination as Federal Reserve chair after a federal investigation into Jerome Powell concluded. The U.S. Department of Justice closed its three-month probe into Powell over the Federal Reserve’s headquarters renovation, clearing a key hurdle.
Tillis announced on X that he now supports Warsh's confirmation, stating: “I have been clear from the start: the U.S. Attorney’s Office criminal investigation into Chair Powell was a serious threat to the Fed’s independence, and it needed to end before I could support Kevin Warsh’s confirmation.” Tillis holds a seat on the Senate Banking Committee and had previously delayed the process through a procedural hold.
The Senate Banking Committee is set to vote on Warsh’s nomination on April 29. A full Senate vote is expected during the week of May 11. Powell’s current term as Fed chair ends on May 15. If confirmed, Warsh could assume office shortly thereafter.
Warsh is known for a hawkish stance on monetary policy, which typically weighs on risk assets like cryptocurrencies. However, attention has also focused on his personal crypto exposure. Financial disclosures show Warsh reported holdings in over 30 crypto-related investments, including Solana (SOL) and activity on the decentralized exchange dYdX. This has led some market participants to view him as more familiar with the industry than previous candidates.
CME Group FedWatch data shows a 99% probability the Fed holds rates steady at 3.50%–3.75% at the upcoming April 28–29 FOMC meeting. Rate cuts are not expected until September 2027. Deutsche Bank’s Chief Economist Matthew Luzzetti noted the Fed’s tone is expected to remain consistent with a prolonged rate hold.
Geopolitical tensions, including the Iran crisis, are adding pressure from rising energy prices. Warsh has indicated policy decisions will remain insulated from external influence, stating no pressure has been directed at him regarding rate decisions. He has also been critical of the Fed’s large holdings of Treasury and mortgage-backed securities.
