A Republican senator is openly warning that President Donald Trump could face serious resistance from within his own party over a high-stakes nomination tied to the future of U.S. monetary policy.
Sen. Thom Tillis (R-N.C.) said he will oppose Trump’s nominee to lead the Federal Reserve, former Fed governor Kevin Warsh, citing a federal investigation involving current Fed Chair Jerome Powell. Tillis sits on the influential Senate Banking Committee, which plays a central role in vetting Federal Reserve leadership.
The Trump administration is examining Powell’s involvement in a costly renovation of Federal Reserve buildings in Washington, along with testimony Powell gave to the Banking Committee last year. Supporters of the investigation argue taxpayers deserve answers, while Powell’s defenders claim the probe is politically motivated and tied to ongoing disagreements between the White House and the Federal Reserve.
President Trump has repeatedly criticized Powell for keeping interest rates elevated, arguing that high borrowing costs hurt American families, small businesses, and U.S. competitiveness. Powell, whose term expires in May 2026, has pushed back, maintaining that the Federal Reserve must remain independent and make decisions based on economic conditions rather than political pressure.
Republicans currently hold a narrow 53-seat majority in the Senate, leaving little margin for defections. That reality gives added influence to lawmakers willing to break ranks. Warsh will need a simple majority to be confirmed, with the vice president able to break a tie—making Tillis’s opposition potentially decisive if even one additional Republican joins him.
Despite acknowledging Warsh’s qualifications, Tillis said his position would not change.
“Kevin Warsh is a capable nominee with deep experience in monetary policy,” Tillis wrote in a post on X. “However, the Department of Justice is pursuing an investigation into Chairman Powell based on testimony that no reasonable person could view as criminal.”
Tillis added that protecting the independence of the Federal Reserve from political or legal pressure was “non-negotiable,” and said he would oppose any Federal Reserve nomination until the investigation into Powell is fully resolved.
Asked whether Warsh could be confirmed without Tillis’s support, Senate Majority Leader John Thune offered a blunt assessment, saying it was “probably not” possible.
President Trump, meanwhile, renewed his criticism of Powell after the Federal Reserve again declined to cut interest rates. In a post on Truth Social, Trump accused the Fed of failing to act despite easing inflation pressures and warned that continued inaction was harming the country.
The president has argued that lower interest rates are urgently needed as the U.S. faces global instability, rising debt costs, and economic pressure from ongoing trade disputes.
Trump said the Federal Reserve’s decisions are costing the nation “hundreds of billions of dollars a year” in unnecessary interest expenses—money he says could instead be used to strengthen the economy and national security.
With Senate margins razor-thin and economic policy taking center stage in an election year, the internal Republican standoff over the Federal Reserve is shaping up to be one of the most consequential confirmation battles of Trump’s second term.