Key Republican Senator Tillis does not oppose initiating the nomination process for Walsh as Federal Reserve Chair, but will still block the vote.

On Tuesday, according to Punchbowl News, Republican Senator Thom Tillis of North Carolina said, he can accept starting the review process for Kevin Warsh's nomination as chair of the Federal Reserve. A Punchbowl reporter posted on social platform X that Tillis said he didn't need any further answers from there and considered Warsh a "qualified candidate."

However, Tillis also pointed out that since he previously vowed to block the nomination, Warsh’s nomination could “stay in committee for some time.”

Last week, Trump officially nominated Warsh as Federal Reserve Chair, to replace Powell. Tillis has previously said several times that he would block Warsh’s nomination in the Senate until the investigation into Powell is withdrawn. Previously, Powell denied any misconduct and said he was being investigated because he refused to cut rates steeply and quickly as Trump requested.

According to CNBC, Tillis said Tuesday that nothing Warsh says at their meeting could persuade him to end his blocking of the confirmation process for Warsh’s nomination as Federal Reserve Chair. When asked whether Warsh, who was meeting with him later that day, could convince him to change his stance and allow a Senate floor vote on the nomination, Tillis replied to reporters:

“No, no. This is not a personal issue, it's a procedural issue. I think it’s a violation.”

Tillis said he’s already been impressed by Warsh’s capabilities. “I’ve known his work for a long time, which is why I'm very frustrated—until other issues are resolved, I can’t cast this vote.”

Tillis also pointed out that he and other members of the Senate Banking Committee had heard Powell’s testimony at hearings, which involved a multibillion-dollar renovation project at the Federal Reserve headquarters in Washington, D.C. Powell said he is being investigated by the Washington federal prosecutor’s office over the project and his testimony before the Banking Committee.

Tillis said Tuesday: “There were seven members of the Banking Committee there at the time, you could call them eyewitnesses to the so-called crime scene, and they all said no crime occurred. So why are we even discussing this and delaying the nomination of an excellent candidate?”

Tillis also noted that, aside from the ongoing investigation into Powell, the Supreme Court has not yet ruled on whether Trump has the authority to fire Federal Reserve governor Lisa Cook. Tillis called the effort to fire Cook “childish and ridiculous” on Tuesday and said that whoever proposed the idea should also be fired.

Trump previously said he wants to fire Cook because Bill Pulte, head of the Federal Housing Finance Agency, accused her of mortgage fraud. But Cook’s supporters say she, like Powell, denies any wrongdoing and is targeted for opposing Trump’s demands on interest rates.

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