What happened with Kevin Warsh and the Fed chair role?

Senator Thom Tillis said he will support Kevin Warsh’s confirmation as Federal Reserve chair after the DOJ closed its probe into Jerome Powell. This removes a key political obstacle. Warsh’s nomination can now move toward a Senate vote.

Why does Thom Tillis’s support matter for Kevin Warsh?

Tillis sits on the Senate Banking Committee and could block the nomination process. His backing allows the committee to advance Warsh to a full Senate vote. Without this support, the nomination could have stalled.

What was the DOJ investigation into Jerome Powell about?

The DOJ investigated Powell over a billion-dollar Federal Reserve renovation project. The probe lasted three months and has now closed. Tillis said the investigation raised concerns about Fed independence.

When could Kevin Warsh become Federal Reserve chair?

The Senate Banking Committee is set to vote on April 29. A full Senate vote could follow in mid-May. Warsh could take office shortly after Powell’s term ends on May 15.

How is Kevin Warsh viewed on interest rates and policy?

Warsh is generally seen as hawkish, meaning he may favour higher interest rates to control inflation. Higher rates can pressure risk assets like equities and crypto. However, his exact policy stance is not fully defined.

How could Kevin Warsh impact crypto markets?

A hawkish Fed stance typically weighs on crypto by tightening liquidity. However, Warsh is considered relatively crypto-friendly based on past disclosures. This creates mixed expectations for the sector.

What crypto exposure does Kevin Warsh have?

Warsh disclosed exposure to more than 30 crypto projects. These include Solana and decentralised exchange dYdX. This suggests familiarity with the digital asset ecosystem.

How might this affect markets in the short term?

Short term, markets may react to increased certainty around Fed leadership. Interest rate expectations will be the key driver. Crypto and equities could move based on perceived policy direction.

Senator clears path for Warsh Fed confirmation

Written by Jon CuthbertPublished Apr. 27 2026Last Updated Apr. 27 2026

Thom Tillis said he will back Kevin Warsh as Federal Reserve chair after a US Department of Justice probe into Jerome Powell was closed.

The move removes a key procedural hurdle, allowing Warsh’s nomination to advance toward a Senate vote ahead of Powell’s term ending on May 15.

Tillis said he had required the investigation into the Federal Reserve’s billion-dollar renovation project to conclude before supporting the nomination.

“I have been clear from the start: the U.S. Attorney's Office criminal investigation into Chair Powell was a serious threat to the Fed's independence, and it needed to end before I could support Kevin Warsh's confirmation,”

Said Senator Thom Tillis.

The Senate Banking Committee is set to vote on April 29, with a full Senate vote expected in mid-May, potentially positioning Warsh to take office shortly after Powell’s departure.

Warsh is viewed as hawkish on interest rates, a stance that could weigh on risk assets such as cryptocurrencies, though some analysts suggest political pressure from Donald Trump could influence policy direction.

He is also seen as relatively crypto-friendly, with disclosures showing exposure to digital assets including Solana and decentralised platforms such as dYdX, adding uncertainty to how his leadership may impact the sector.