Warsh Fed Nomination Halted as Tillis Threatens To Block Vote Despite Hearing Agreement

Treasury Secretary Scott Bessent said a hearing on former Federal Reserve Governor Kevin Warsh’s nomination is expected despite Republican Sen. Thom Tillis’ vow to block confirmation. Tillis, a Senate Banking Committee co-chair responsible for Fed nominees, reiterated he would not advance any vote until the Justice Department completes its probe into the Fed’s $2.5 billion headquarters renovation. The split on the committee means Warsh’s nomination likely cannot proceed to the full Senate without Tillis’ support or a Democrat joining the GOP members, unless a hearing is held first. “We have an agreement to get the hearings underway,” Bessent said, noting Tillis remains the deciding vote. Tillis said he supports an oversight hearing but would not move on the floor until the probe concludes. Bessent declined to comment on charges in the probe, cautioning subpoenas do not necessarily mean formal accusations. Powell’s term ends in May 2026. Bessent forecast inflation could reach the Fed’s 2% target mid-year and GDP growth for 2025 may exceed 3% depending on fourth-quarter data. US underlying inflation edged up at the start of the year in line with expectations.