President Donald Trump's selection of Kevin Warsh as his preferred candidate to head the Federal Reserve has encountered pushback from within the GOP ranks in Congress, introducing uncertainty into the confirmation timetable for the nomination.
Senator Thom Tillis, a Republican from North Carolina who serves on the Senate Banking Committee, said in a post on X that he will "continue to oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman" until the Justice Department's investigation into Federal Reserve Chair Jerome Powell is "fully and transparently resolved." Tillis, who is not running for re-election in 2026, framed his decision as a defense of the central bank's independence from political pressure.
The makeup of the Banking Committee amplifies the impact of Tillis' stance. The panel holds a narrow 13-11 Republican majority, meaning the loss of a single GOP vote could delay sending a nomination to the full Senate. Republican control in the full Senate itself is slim, with a three-vote margin, so any hold-up in committee could complicate the path to confirmation.
The Justice Department's inquiry that Tillis cited traces back to Powell's testimony to the Banking Committee last year about cost overruns on a renovation project at the Federal Reserve's Washington headquarters complex. According to Powell, the department served him with a grand jury subpoena earlier this month. Powell has denied any wrongdoing and characterized the probe as a "pretext" used to exert pressure on the central bank over monetary policy. President Trump has in turn publicly demanded substantial interest rate cuts from the Fed to stimulate the economy.
Tillis addressed the investigation directly in his post: "The Department of Justice continues to pursue a criminal investigation into Chairman Jerome Powell based on committee testimony that no reasonable person could construe as possessing criminal intent," he said. "Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable."
At least one other Republican, Senator Lisa Murkowski of Alaska, has previously stated she would not support a Trump Fed nominee while the Justice Department's probe is ongoing. The positions of Tillis and Murkowski underscore a fracture within the Republican conference over how to respond to both the Justice Department action and the White House's efforts to influence central bank policy.
Tillis' move also reflects a recent escalation in tensions between him and the president. In an ABC News interview earlier this week, President Trump called both Tillis and Murkowski "losers" after they criticized the administration's immigration enforcement operation in Minnesota. Tillis has grown more outspoken since announcing he would not seek re-election in 2026. He made that decision after breaking with the White House over last year's tax-and-spending bill, citing concerns about its potential effects on North Carolina, a politically competitive state with both Republican and Democratic statewide leaders.
The senator's current opposition does not amount to a permanent veto of Warsh's nomination. Tillis praised the former Fed governor in his post and left room for changing his position should the Justice Department alter the course of its inquiry.
Republican senators during Trump's second term have generally given the president broad leeway on nominations. Still, Tillis and a smaller cohort of GOP critics have emphasized the importance of maintaining the Federal Reserve's autonomy amid White House criticism and related legal actions involving central bank officials, including the probe into Chair Powell and an investigation connected to Fed Governor Lisa Cook.
Separately, the administration took the extraordinary step of attempting to remove Governor Cook from the central bank, and the U.S. Supreme Court heard arguments last week on the legality of that attempt. These concurrent legal and political developments have heightened questions about institutional independence at the Fed.
Timing for Kevin Warsh's confirmation hearing remains unclear. Senator Tim Scott, the South Carolina Republican who chairs the Senate Banking Committee, welcomed the nomination and said he intends to run "a thoughtful, timely confirmation process" for the nominee. Other Republicans on the committee expressed strong endorsement: Senator Bernie Moreno of Ohio called the selection "phenomenal" and said Warsh "will restore independence to the Federal Reserve."
Democrats on the committee signaled they will scrutinize the pick. Senator Elizabeth Warren, the committee's senior Democrat, issued a sharp critique of the nomination, stating, "This nomination is the latest step in Trump’s attempt to seize control of the Fed. Donald Trump said anybody who disagrees with him will never be Fed Chairman. Former Fed Governor Kevin Warsh - who cared more about helping Wall Street after the 2008 crash than millions of unemployed Americans - has apparently passed the loyalty test."
Outcomes to watch in the near term include whether the Justice Department concludes or alters the scope of its inquiry into Powell and whether additional Senate Republicans join Tillis in withholding support while the probe continues. Those developments will affect not only the committee's ability to move a nominee to the Senate floor, but also broader debates over the limits of political influence on monetary policy.
As the process unfolds, the interplay of legal actions, intra-party disagreements, and public pressure on the Federal Reserve will remain central to the confirmation narrative.