No pardon, only closure of the probe: Tillis demand and Democrats’ letter stall Warsh nomination

Financial News New York – Reporter Lee Byung-chulRepublican Senator Tom Tillis of the Senate Committee on Banking, Housing, and Urban Affairs is insisting that the investigation into Federal Reserve Chair Jerome Hayden Powell be fully closed, throwing Kevin Warsh’s confirmation hearing for Fed chair into uncertainty. He has made clear that he will block the inauguration of a new Fed chair until there is a complete end to the probe, rather than what some see as a backdoor solution through a presidential "pardon" for Powell. On top of this, all Democratic members of the Senate Banking Committee have also set conditions for cooperating with the confirmation process, leaving Warsh’s nomination blocked by both parties. Powell is under investigation over whether he distorted facts or committed perjury in Senate testimony regarding the surging costs of renovating the Fed’s headquarters.

Tillis said on the 3rd (local time) that he would oppose all Federal Reserve nominees until the investigation into Powell is concluded, according to political outlet Politico. He had taken the same position on November 30, when President Donald Trump nominated former Fed governor Kevin Warsh as the next Fed chair.
That day, he also dismissed the idea that the president might pardon Powell. Tillis stated, "Even if a pardon is granted, my position will not change," adding, "The only solution is for the Department of Justice to close its investigation into Powell’s Senate testimony."
Some have floated a presidential "pardon" as a way to smooth the process of installing Warsh as chair. In the United States, a presidential pardon can remove legal risk even at the investigative stage, before any indictment. Tillis, however, rejected this approach as "a foolish and wrong choice." He argued that a pardon could instead reinforce the impression that Powell committed perjury at last year’s Senate Banking Committee hearing.
Tillis described Warsh as "someone who could be an excellent Fed chair," but added, "It might not be in this Congress; it could be in the next one."

Tillis’s opposition has become a decisive factor in whether Warsh can clear the Senate Banking Committee. The committee currently has 13 Republicans and 11 Democrats. If Tillis votes no, the tally would be split 12–12, preventing the nomination from advancing out of committee to the full Senate.
Democratic senators have also moved as a bloc to slow the process. In a letter sent to Committee Chair Senator Tim Scott, the 11 Democratic members of the Senate Banking Committee demanded, "The committee must not proceed with confirmation hearings for Warsh until the baseless criminal investigations into Chair Powell and other Fed governors are brought to an end."
The Department of Justice is currently investigating not only Powell but also Fed governor Lisa Cook over alleged mortgage fraud. Trump attempted to remove Cook last summer, but she has remained in office and appeared before the Supreme Court last month to challenge the legality of the dismissal attempt.
In their letter, the Democratic senators warned, "The administration’s attempt to seize control of the Fed through criminal prosecutions is dangerous and unprecedented," and added, "For the president to nominate the next Fed chair while the Justice Department is investigating two sitting Fed governors risks undermining confidence in our democracy and in financial markets."
Meanwhile, when asked the previous day whether he would ask prosecutors to drop the Powell case in order to secure Warsh’s confirmation, Trump avoided a direct answer and instead said that Jeanine Pirro, the U.S. Attorney for the District of Columbia, would "take this all the way." In response, Tillis commented, "For this week at least, the president and I are on the same page," adding, "We both intend to see this through to the end."

pride@fnnews.com Reporter Lee Byung-chul Reporter