Kevin Warsh nomination stalled as Tillis links hearing to Powell probe

President Donald Trump’s pick to lead the Federal Reserve, former governor Kevin Warsh, has encountered a procedural obstacle in the Senate confirmation process as at least one influential Republican vowed to withhold support.

The impasse intensified after Senator Thom Tillis (R‑N.C.), who serves on the Senate Banking Committee, publicly said he will not back any Fed nominee until the Department of Justice (DOJ) completes its criminal inquiry into Chair Jerome Powell. Tillis’s stance, coupled with opposition from all committee Democrats, has effectively blocked an easy path to a confirmation vote.

Central to the delay is the DOJ’s investigation into Powell, which examines statements made during past congressional testimony and related matters; the existence of an active federal inquiry has made several senators reluctant to advance a new Fed chair while legal questions remain unresolved. That probe has become a decisive factor in whether the committee will schedule and hold a timely hearing.

The White House has been pushing the process forward and media reports say the Senate Banking Committee was planning a hearing for April 16, 2026, though the timetable remains fragile given Tillis’s blockade. Powell’s term as Fed chair technically expires on May 15, 2026, narrowing the window for a confirmed successor and raising the prospect of a temporary extension of leadership or additional legal and political maneuvering.

Market strategists warn that a protracted confirmation fight would add policy uncertainty at a sensitive juncture for U.S. monetary policy, potentially lifting volatility across rates and risk assets. Analysts say outcomes range from a swift committee vote if the DOJ inquiry concludes, to months of delay that could force the Fed to operate under interim arrangements; investors will monitor legal and congressional developments closely for signals on future policy direction.