Sen Thom Tillis (R-N.C.) said Sunday he will support Kevin Wersh’s nomination to chair the Federal Reserve as the Justice Department closed its investigation into current central bank chief Jerome Powell, clearing the way for Wersh’s appointment in the coming weeks.
“I have been clear from the beginning: The U.S. Attorney’s Office’s criminal investigation against Chair Powell was a serious threat to the Fed’s independence, and it needed to end before supporting Kevin Wersh’s confirmation,” Tillis said in a statement Sunday.
Justice Department moved to friday To quash Powell’s investigation, which centered around cost overruns related to the renovation of the Fed’s Washington headquarters. The move came after a federal judge, James Boasberg, quashed the DOJ’s subpoena issued to the feds.
Tillis, who is retiring after his term ends this year, said he welcomes a separate investigation being conducted by the Fed inspector general, calling it “a necessary and appropriate measure.”
He wrote, “I believe the Justice Department at its word: the investigation is closed, and any appeal of Judge Boasberg’s decision will be with regard to legal principles, and not for the purpose of re-issuing the subpoena.” “Only a criminal referral from the Inspector General will cause the investigation to be reopened.”
In an interview on NBC’s “Meet the Press” on Sunday, Tillis said he “has had numerous discussions with the Justice Department,” and that officials have “made it very clear that the current investigation has been completely concluded.”
Tillis told host Kristen Welker, “We worked a lot over the weekend to make sure that we were very clear that we had the assurances from the DOJ that I needed to feel that they were not using the DOJ as a weapon to threaten the Fed’s independence.”
He said he expects the DOJ to appeal Boasberg’s decision to quash the DOJ subpoena, but has been assured that “that appeal is only to challenge the basis of his decisions”. “This will in no way be a basis for re-opening the investigation,” he said.
The Senate Banking Committee, where Tillis has the casting vote, sure to move forward Warsh’s nomination Wednesday. Tillis has praised Warsh’s qualifications for the Fed.
“He is an excellent nominee and it is time for the Federal Reserve to move on from this distraction and focus its full attention on its mission,” he said Sunday.
