There is nothing Federal Reserve chair nominee Kevin Warsh can say to get Sen. Thom Tillis to end his blockade of Warsh’s confirmation, the North Carolina Republican said Tuesday.
Tillis has vowed not to vote for any Fed nominee, including Warsh, until a criminal investigation into Fed Chairman Jerome Powell is resolved. Powell, who denies any wrongdoing, has said he is actually under attack for his refusal to cut interest rates as widely and quickly as President Donald Trump demands.
“No, no,” Tillis told reporters at the U.S. Capitol, when asked if Warsh could say something at their meeting later in the day to change the senator’s position on blocking a full Senate vote on the nomination.
“It’s not about people, it’s about processes,” Tillis said. “I think this is a foul.”
After the meeting, Tillis told reporters that he would vote against advancing the Banking Committee’s nomination of Warsh if the Powell investigation is not over by then.
“This is the fundamental principle of the independence of the Federal Reserve,” the senator said. “The reason I came out so strong so early is I think we, I, have no idea what the market reaction would have been if suddenly the perception is that the Fed chair serves at the discretion of the President, right?”
Tillis noted that in addition to the pending investigation into Powell, the Supreme Court has yet to rule on whether Trump has the power to fire Federal Reserve Governor Lisa Cook.
Trump claims he wanted to fire Cook because of an allegation by Bill Pulte, director of the Federal Housing Finance Agency, that she committed mortgage fraud. But defenders of Cook, who also denies wrongdoing, say she is being attacked like Powell for her opposition to Trump’s interest rate demands.
Tillis on Tuesday called the attempt to fire Cook “sophomore.”
“Whoever came up with that idea should also be fired,” the senator said.
Tillis said Tuesday that he is “already impressed” with Warsh’s skills.
“I’ve known his work for quite some time and that’s why I’m so frustrated because I won’t be able to cast a vote until we fix the other issues,” Tillis said.
The senator noted that he and other members of the Senate Banking Committee witnessed Powell’s testimony before that panel about the multibillion-dollar renovation of the Federal Reserve headquarters in Washington, DC.
Powell has said he is under investigation at the U.S. Attorney’s Office in Washington in connection with that project and for his testimony before the Banking Committee.
Tillis said Tuesday: “We had seven members of the Banking Committee who were witnesses at the alleged crime scene and said no crime had been committed.”
“Why are we still having this discussion and putting up a great nominee?” -Tillis asked.
“I think it goes back to a young U.S. attorney with a dream, with a false basis for an investigation,” he said. “They need to recognize that and step away so we can confirm it.”
Sen. Cynthia Lummis, R-Wyoming, praised Warsh after her meeting with him Tuesday.
“Today I had an incredibly productive and thoughtful conversation with Kevin Warsh,” Lummis said in a statement.
“I have always maintained that the United States needs a transparent and accountable Federal Reserve that embraces financial innovations like digital assets rather than repressing them,” he said. “This is vital to our nation’s financial future, and I look forward to continuing to speak with him to see how he intends to modernize the Federal Reserve and hold it accountable to the American people and their representatives in Congress.”
