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Republican Trump Critic Tillis Backs Down on Warsh Fed Chair Opposition After DOJ Drops Powell Probe

The Independent — World John Bowden 0 переглядів 4 хв читання

GOP Senator Reverses Stance on Federal Reserve Nominee Following Government Assurances

A North Carolina Republican senator who has repeatedly clashed with Donald Trump announced Sunday that he will no longer block the nomination of Kevin Warsh as chairman of the Federal Reserve, providing the administration with a significant legislative victory as scrutiny intensifies over multiple Cabinet positions.

Thom Tillis made the declaration during an appearance on NBC's Meet the Press, revealing that the Department of Justice had provided him with assurances that it would discontinue its criminal investigation into current Fed Chair Jerome Powell regarding renovations at the central bank's headquarters.

Conditions Met for Confirmation

"We worked a lot over the weekend to make sure that we were very clear that we have assurances from the DOJ that I needed to feel like they were not using the DOJ as a weapon to threaten the independence of the Fed," Tillis told NBC News anchor Kristen Welker. "So this will allow Mr. Warsh to move on with his confirmation on time."

The inquiry into Powell had drawn accusations from multiple Trump critics, including Tillis himself, of being politically motivated—an effort to pressure the Fed chair into either resigning or complying with the president's policy preferences. The Justice Department has not indicated plans to resume the investigation, though it retains the legal authority to do so.

Tillis's Earlier Stance on Warsh's Qualifications

During Warsh's recent confirmation hearing before the Senate Banking Committee, Tillis acknowledged the nominee's impressive resume. "You have extraordinary credentials. They're impeccable," the senator said, clarifying that his reservations stemmed exclusively from the administration's approach rather than Warsh's qualifications.

Following the hearing, Tillis told reporters: "Let's get Chair Powell comfortable with actually exiting at some point, not to 2028, and do that by eliminating a bogus investigation that started this whole drama."

A Moderate's Contentious Relationship with Trump

Tillis represents an unusual faction within the Republican caucus—a moderate whose voting record generally aligns with the administration more consistently than senators like Lisa Murkowski or Susan Collins, yet someone who experienced a public rupture with Trump in 2025 from which relations never recovered.

The senator's estrangement from the president originated from his opposition to the GOP's reconciliation package—dubbed the "big, beautiful bill" by supporters—which extended the 2017 tax cuts while expanding ICE funding. Tillis specifically objected to provisions that would reduce Medicaid through new eligibility and reimbursement standards, warning of severe consequences for rural hospital networks.

Since that vote, Tillis has emerged as one of the Senate's few Republicans willing to publicly critique the administration on various matters, including ICE enforcement operations in Minneapolis that concluded following the deaths of two Americans.

Political Fallout and Retirement Decision

His announcement that he would not seek reelection created complications for Republicans in North Carolina, where Democratic candidates currently lead in most polling for his successor. Had Tillis remained in the race, he almost certainly would have faced a Trump-backed primary challenger. Senator Bill Cassidy of Louisiana faces a similar situation, defending his seat against a Trump-endorsed Republican opponent while Trump remains bitter over Cassidy's 2021 impeachment vote.

Powell's Conflict with the President

Powell emerged as a target of Trump's frustration over what the president characterizes as excessive interest rates hampering economic growth. The Fed chair has attributed inflation and elevated consumer prices partly to Trump's tariff policies, further antagonizing the president, who has repeatedly suggested he would remove Powell from his position.

Trump views Warsh as more amenable to rate reductions, despite risks of intensified inflationary pressures. Congressional Republicans have largely forced the president to moderate his threats against Powell's independence, a constraint that may have contributed to the administration's decision to abandon the criminal investigation.

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