President that of Donald Trump The choice of Kevin Warsh to lead the Federal Reserve shifts attention to the Senate, where confirmation could be delayed by Republican opposition linked to a criminal investigation into Fed Chairman Jerome Powell.
Warsh would succeed Powell, whose term expires in May, but must first be confirmed by a simple majority in the Senate, a process that typically begins with a hearing and vote in the Senate Banking Committee.
Kevin Warsh, former governor of the US Federal Reserve, in Sun Valley, Idaho, Wednesday July 9, 2025. (David Paul Morris/Bloomberg via Getty Images)
The senator Thomas Tillis R-N.C., doubled down Friday, saying he would oppose the confirmation of any Federal Reserve nominee until the Trump administration completes its criminal investigation into Powell. Tillis’ resistance takes on particular weight given his seat on the Senate Banking Committee.
TRUMP NOMINATES KEVIN WARSH TO SUCCEED JEROME POWELL AS FEDERAL RESERVE CHAIRMAN
“Kevin Warsh is a qualified candidate with a deep understanding of monetary policy. However, the Justice Department continues to conduct a criminal investigation into Chairman Jerome Powell, based on committee testimony that no reasonable person could interpret as possessing criminal intent,” Tillis wrote in an article on X.
TRUMP ADMINISTRATION’S CRIMINAL INVESTIGATION OF FED CHAIR POWELL TRIGGERS RARE GOP REVOLT ON CAPITOL HILL
“Protecting the independence of the Federal Reserve against political interference or legal intimidation is non-negotiable,” Tillis added.
With Tillis getting his hands on Appointment of Warshthe only way to expel him from the Senate Banking Committee would be through a Senate discharge vote, a move that requires 60 votes and is unlikely in a deeply divided Senate, especially amid tensions over the Powell investigation.
What’s more, his potential ascension to head the world’s most powerful central bank comes at a time of unusual tension.
Trump vs. the Federal Reserve: How the shock reached uncharted territory
President Donald Trump speaks to Fed Chairman Jerome Powell during a visit to the Federal Reserve in Washington, DC, Thursday, July 24, 2025. (Official White House photo by Daniel Torok)
What started as tension over interest rate policy turned into a full-blown confrontation, marking the most difficult moment in Powell’s eight years as cabinet minister. Federal Reserve.
On January 11, Powell confirmed that the Justice Department had opened a criminal investigation into his congressional testimony regarding the renovation of the two main historic Federal Reserve buildings on the National Mall in Washington, DC.
FEDERAL RESERVE PRESIDENT POWELL UNDER CRIMINAL INVESTIGATION OVER HQ RENOVATION
Powell called the move “unprecedented” in a video statement and another example of what he described as Trump’s continued threats against the central bank. His decision to respond publicly, after days of private consultation with advisers, marked a radical departure from his usually measured approach.
Fed Chair Powell Addresses DOJ Criminal Investigation Federal Reserve Chairman Jerome Powell confirmed that the central bank had been served by the Justice Department in connection with allegations related to congressional testimony about the renovation of the bank’s headquarters. (Credit: Federal Reserve)
On Wednesday, Powell, speaking to reporters for the first time since the criminal investigation was opened, said his advice to the next Fed chair would be to stay out of elected politics. He also reiterated the importance of an independent central bank.
POWELL REVEALS WHAT IT TAKES TO LEAVE THE FED AS PRESSURE MOUNTS
Powell, widely considered one of the most crisis-ridden Federal Reserve chairmen in modern US history, built his career as a lawyer and investment banker in New York before entering public service in the administration of President George HW Bush.
He joined the Federal Reserve Board of Governors in 2012 and was appointed by Trump to head the central bank in 2017.