Sen. Thom Tillis says he will keep blocking President Trump's Fed pick until a probe ends.

Holdout centered on DOJ probe

Sen. Thom Tillis, R-N.C., told reporters he will refuse to back Kevin Warsh's nomination to lead the Federal Reserve until the Justice Department concludes an investigation involving Fed Chair Jerome Powell. The confirmation hearing for Warsh is scheduled for next week, but Tillis said he won't cast a vote while the probe is unresolved — a stance that could stop Warsh's confirmation if Senate Democrats remain unified against the nominee.

Look, Tillis argued, Powell did nothing wrong and deserves protection from what the senator described as a politically tinged inquiry. He said he believes President Donald Trump when the president says he didn't open the probe, but Tillis suggested that "somebody in DOJ" may be pursuing the case to curry favor in the White House.

Tillis tied his vote directly to the probe's outcome. "End the probe, and I will vote for Kevin Warsh simultaneously with the conclusion of that statement coming out of the DOJ, and not a day before," the senator said. He added he wouldn't vote for Warsh for the remaining 264 days of his Senate term if the DOJ didn't issue that closing statement.

Federal Reserve Chair Jerome Powell has denied any wrongdoing, and a federal judge recently blocked certain subpoenas tied to the inquiry, finding little evidence to justify them, according to court filings cited by Tillis's office.

What the standoff means for the Fed

Thing is — the fight over Warsh isn't just a Senate theater. Powell's term as Fed chair runs through May, and the timing of any confirmation vote matters for how smoothly leadership transitions at the central bank could occur. If Warsh can't secure Senate approval, the Fed could face a period of uncertainty over its top job.

That uncertainty comes as the Fed faces pressure from the White House. Tillis noted Trump has publicly criticized Powell and threatened to remove him after Powell resisted presidential pressure to cut interest rates. Powell has held firm on monetary policy decisions, arguing they're based on the economy's data and outlook.

For markets and the economy, a contentious confirmation could matter. Investors generally prefer clarity about who will set U.S. Monetary policy. A drawn-out fight or vacancy at the Fed's helm can complicate planning for interest rates, credit markets and borrowing costs for businesses and consumers. A swift, confirmed successor tends to calm financial markets; a protracted debate can do the opposite.

Tillis on Trump, the pope and political tone

Tillis also weighed in on a separate controversy: President Trump's social-media attacks on the leader of the Catholic Church. The senator, who identifies as Catholic, said he was baffled by the president's criticism of the pope and called for an apology.

"I, for one, think apology is an underused art in politics," Tillis said. "When you're wrong, you're wrong, or if you made a mistake, or maybe it was just a misconception, just get past it. Move on." He said the president has done many positive things that deserve focus, but that attacking the pope was unnecessary.

And Tillis brushed off suggestions that he was deflecting by defending Trump in some cases and criticizing him in others. He acknowledged he is retiring at the end of the year and said he has "lost his filter," a remark he used to explain blunt assessments of matters ranging from foreign policy to social-media controversies involving the president.

Foreign policy notes and Senate votes

Tillis said he has given the president "latitude" on the operation against Iran, though he confessed uncertainty about the strategic objectives. The senator has opposed multiple efforts in the Senate — including measures led by Democrats and by Sen. Rand Paul of Kentucky — to restrict the president's military actions.

That voting record shows how Tillis views his role: willing to support the administration on use-of-force questions while insisting on checks in other areas, like the DOJ's handling of investigations that touch the central bank. His stance shows the way individual senators can exert oversized influence on national policy when margins are tight in the Senate.

Political math and timing

Warsh's path to confirmation depends on more than Tillis. The administration needs to hold its Republican votes and avoid defections while Democrats remain opposed, as Tillis noted. With the Senate closely divided, a single senator's refusal to back a nominee can stall the process.

Tillis framed his position as both principle and leverage: he won't reward what he called "bad behavior" by with a confirmation while an investigation remains open. He specifically said Powell's current term as chair ends in May, which adds urgency to the question of who will lead the Fed through 2026 and into the next economic cycles.

Republicans who support the president's economic agenda may be uneasy about prolonging uncertainty at the Fed. At the same time, those who share Tillis's concern about perceived politicization of the DOJ might view his hold as a necessary check. The tug-of-war reflects broader strains in Washington over how institutions should handle politically sensitive matters.

Implications for markets and policy

While senators spar, Fed officials will still manage monetary policy. But battles over leadership can sap momentum and make it harder for the central bank to project a steady course. If investors interpret the standoff as a sign of political interference in the Fed's affairs, risk appetite could shift and borrowing costs could move unpredictably.

Some economists and market participants watch leadership moves closely because those changes influence expectations for interest rates and inflation management. A candidate loyal to the administration might be perceived as more willing to follow White House preferences, while a nominee seen as independent could reassure those who want the Fed to keep policymaking separate from political winds.

Tillis's demand that the DOJ issue a formal statement closing the probe before he'll vote introduces a discrete, testable condition into the confirmation process. That kind of demand is unusual but not rare — senators sometimes tie confirmations to related developments elsewhere in government.

What comes next

Kevin Warsh is set for a confirmation hearing next week. How that hearing plays out will depend on whether the DOJ moves to end the investigation or whether Tillis holds firm. If Tillis refuses to budge, Warsh could face a delayed or failed confirmation despite a hearing.

The senator's move also opens a political calculus for party leaders. Democrats could hold together to block Warsh if Tillis remains opposed; Republicans could try to flip Democratic votes or persuade Tillis to relent. For now, the immediate sequence is clear: the hearing proceeds, Tillis has signaled he won't support confirmation while the DOJ probe is open, and the White House must decide how aggressively to press the nomination amid the standoff.

One thing is certain: the intersection of DOJ scrutiny, a presidential push for Fed loyalty, and a single senator's refusal to vote adds a rare mix of legal, economic and political pressure to a high-stakes confirmation battle.

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"End the probe, and I will vote for Kevin Warsh simultaneously with the conclusion of that statement coming out of the DOJ, and not a day before," Sen. Thom Tillis, R-N.C., said.