Tillis ends block of Fed chair nominee Warsh, clears way for Trump pick

Tillis's decision came after the Justice Department dropped its probe into Powell, effectively closing a chapter Trump had opened over alleged improper spending on the Fed building's renovation. With this legal hurdle removed, Tillis agreed to support Warsh's nomination, clearing a major path for Trump's preferred chairman.

Warsh, if confirmed, is expected to shift Fed policy significantly. He has previously criticized the central bank's accommodative stance and advocated for tighter monetary policy aligned with Trump's inflation-fighting agenda. Warsh is also a staunch supporter of Trump's trade-focused approach and has criticized multilateral institutions.

The Justice Department's decision to close the Powell investigation drew criticism from some lawmakers who viewed it as politically motivated. Markets are pricing in a more hawkish Fed under Warsh, with implications for interest rates, inflation expectations, and asset valuations. The transition could begin in mid-2026.