Amid escalating U.S.-Israel military strikes against Iran, a separate battle is brewing on Capitol Hill over President Donald Trump’s nomination of Kevin Warsh to chair the Federal Reserve, according to CNBC.
The key obstacle is Sen. Thom Tillis (R-NC), who announced last year that he would not seek re-election one day after voting against advancing the president's signature legislation, the “Big Beautiful Bill.”
Tillis has pledged to withhold support for any Federal Reserve nominees, including Warsh, until a criminal investigation into Fed Chair Jerome Powell’s handling of the Federal Reserve’s $2.5 billion renovation is resolved. Powell has denied any wrongdoing.
“No, no,” Tillis reportedly said when asked if Warsh could say anything during their scheduled meeting later that day to shift the senator’s stance on blocking his nomination.
“This is not about people, it’s about process,” the North Carolina Republican added. “I think this is a foul.”
Following the meeting, Tillis told reporters he would vote against advancing Warsh’s nomination out of the Senate Banking Committee if the Powell investigation remains unresolved by then.
“This is about [the] bedrock principle of Fed independence,”Tillis said. “The reason why I came out so strong so early is I believe that we, I, have no earthly idea what the market reaction would have been if suddenly the perception is that the Fed chair serves at the pleasure of the President, right?”
Of course, Tillis is simply shielding Powell - the architect of the everything-bubble and dollar debasement - from a long over due probe into waste and potential perjury. In other words 'you can't fire this guy until you've fully investigated him' - effectively delaying or preventing accountability for Powell in a practical sense while preserving the status quo at the fed.
Despite Tillis’s opposition to advancing Warsh’s nomination, the senator said he was “impressed” with Warsh, signalling that he would support Trump’s Fed pick if the Powell probe went away.
“I’ve known of his work for quite some time, and that’s why I’m so frustrated that I’m not going to be able to cast a vote until we dispose of the other issues,” Tillis said.
Tillis also took aim at the firing of Federal Reserve Governor Lisa Cook, calling it “sophomoric.”
“We had seven members of the Banking Committee who were witnesses at the alleged scene of the crime who said no crime was committed,” the retiring lawmaker said. “Why are we even still having this discussion and holding up a great nominee?” Tillis asked.
“I think it goes back to a young U.S. attorney with a dream, with a bogus basis for an investigation,” he added. “They need to acknowledge that and step away from it so we can get him confirmed.”
“Whoever came up with that idea should be fired, too,” the senator said.