Sen. Tillis will oppose Trump Fed chair pick Warsh until Powell probe resolved

• Tillis previously vowed earlier this month to oppose any new Fed nominee until the DOJ's controversial investigation of Powell is completed
• The senator's stance creates a potential obstacle for Trump's Fed leadership transition, requiring resolution of the Powell probe before advancing Warsh's confirmation
• The DOJ criminal investigation of the sitting Fed chair represents an unprecedented development in the relationship between the executive branch and the independent Federal Reserve

Summary: Senate Opposition to Trump's Fed Chair Nominee

Senator Thom Tillis (R-NC) announced Friday he will oppose President Donald Trump's nomination of Kevin Warsh as Federal Reserve Chairman until a federal criminal investigation into current Chair Jerome Powell is fully resolved. This marks an escalation of Tillis's earlier pledge from earlier in January 2026 to oppose any new Fed nominee until the Department of Justice's probe of Powell concludes.

Key Points:

• Nominee: Kevin Warsh has been nominated by President Trump to succeed Jerome Powell as Fed Chair
• Opposition: Sen. Tillis is blocking the nomination on principle until the DOJ investigation completes
• Timeline: Tillis initially made his opposition known earlier in January 2026; the Friday statement reaffirms this stance
• Controversy: The DOJ's investigation of current Fed Chair Powell is described as "controversial"

Market Implications:

This development creates significant uncertainty around Federal Reserve leadership at a critical time for monetary policy. The opposition from a Republican senator to a Republican president's nominee suggests potential difficulty in confirming Warsh, which could:

• Extend Powell's tenure indefinitely or create a leadership vacuum
• Introduce volatility in financial markets sensitive to Fed leadership changes
• Complicate the administration's ability to influence monetary policy direction
• Raise questions about Federal Reserve independence given the criminal probe of Powell

The situation remains fluid as this is breaking news, with potential implications for interest rate policy, market stability, and the independence of the central bank.