Senator Thom Tillis (R-N.C.) announced on Sunday that he will support advancing Kevin Warsh's nomination to the full Senate, clearing a major hurdle for President Trump's pick to succeed Jerome Powell as Federal Reserve Chair. Tillis, a member of the Senate Banking Committee, had previously pledged not to vote for Warsh unless the Trump administration ended its investigation into Powell. The announcement comes just days after Jeanine Pirro, the U.S. attorney for the District of Columbia, said she was ending the criminal probe into Powell, providing the necessary assurances for Tillis to change his position.
Federal Reserve Chair Kevin Warsh delivered his inaugural semiannual monetary policy address to Congress on July 14, with the hearing scheduled for 10:00 a.m. ET before the House Financial Services Committee. The House committee announced the schedule in a notice published Monday, with the Senate Banking Committee expected to follow with its own session the next day. The hearings fulfill Warsh's statutory obligation under the Humphrey-Hawkins Full Employment Act of 1978, which requires Fed chairs to appear before both chambers of Congress twice annually in February and July to present the central bank's semi-annual Monetary Policy Report and answer questions on monetary and economic policy.
This appearance comes after an unusual departure from tradition earlier this year, as reported by Reuters. House Financial Services Committee Chairman French Hill did not schedule former Fed Chair Jerome Powell for the committee's February monetary policy hearing, despite the long-standing practice of holding twice-yearly appearances. The backdrop to this year's hearings is shaped by developments surrounding Powell's final months as Fed chief, with the U.S. Department of Justice opening a criminal investigation late last year into statements Powell made during his July 2025 testimony before the Senate Banking Committee.
The investigation was later put on hold after a federal judge ruled that the Justice Department's actions amounted to an inappropriate attempt to pressure Powell into lowering interest rates or stepping down from his position, according to Reuters. Tillis stated on X, formerly Twitter that he takes the Department of Justice at its word: "the investigation is closed, and any appeal of Judge Boasberg's ruling will be with respect to legal principles and not for the purpose of reissuing subpoenas. Only a criminal referral from the inspector general would cause a reopening of the investigation." With these assurances, Tillis looks forward to supporting Warsh's confirmation, calling him "an outstanding nominee, and it is time for the Federal Reserve to move beyond this distraction and return its full attention to its mission."
The July 14 hearing represents a key event for anyone tracking U.S. economic policy, with Chairman Warsh's remarks expected to provide clarity on the Fed's near-term priorities and response to ongoing economic challenges. Inflation currently stands at 4.2%, representing a three-year high driven substantially by energy costs following the Iran war, as reported by PBS. At his first FOMC meeting in June 2026, Warsh left rates unchanged but struck a hawkish tone, with nine of his colleagues signalling support for higher rates and six of those pencilling in two quarter-point increases, according to the Fed's Summary of Economic Projections. Treasury yields will be sensitive to any signals from Warsh on the rate path, with traders watching closely for any shift in his balance-sheet language, particularly given his stated desire to shrink the Fed's holdings.
