Senator Thom Tillis on Blocking Fed Nominees and Ensuring Fed Independence

Federal Reserve Nominee and Investigation

• 📌 Senator Thom Tillis is vowing to block any nomination to the Federal Reserve until the DOJ concludes its investigation.
• 💡 Despite the nomination of Kevin Warsh, Tillis states his position remains unchanged, emphasizing the need to clear the current matter.
• ⚠️ Tillis believes the investigation into testimony lacks criminal intent and questions the justification for a frivolous prosecution holding up a Fed board seat.

Timeline and Fed Operations

• 🗓️ If the investigation lingers until May and the current chair steps down, Tillis notes there would still be a working quorum of members on the Federal Reserve board.
• 🏛️ The decision on an acting chair would fall to the President and Treasury Secretary, not his responsibility.
• ⚖️ Tillis suggests the DOJ should determine if the case is worth pursuing, as they initiated the situation.

Broader Concerns for Fed Independence

• 🎯 Tillis clarifies that his block applies to the Powell case, which impacts the Fed chair position expiring in February.
• 🔍 He also needs the Lisa Cook case to be resolved, viewing both as instances where Fed independence is at stake.
• 📉 Tillis aims to send a signal to markets and the business community that Fed independence is critically important and that undermining it is unacceptable.

Kevin Warsh as a Nominee

• 📊 Tillis considers Kevin Warsh a qualified nominee with a deep understanding of monetary policy and an excellent reputation.
• 🤝 He believes Warsh would act as an independent voice, not do the bidding of the administration, which is crucial for the health of the administration itself.
• 🗣️ Tillis views the current situation as democracy and institutional separation at its finest, with a mechanism for resolving disagreements.