Tillis Says DOJ Investigation of Fed Has to End

Sen. Thom Tillis said he supports Kevin Warsh as the next Federal Reserve chair but will not vote until a "bogus investigation" into Fed renovation work is resolved. The remarks add another political hurdle to the Fed nomination process but do not change policy rates or the economic outlook directly. Market impact is limited unless the confirmation timeline begins to materially slip.

Analysis

Sen. Thom Tillis said he supports Kevin Warsh as the next Federal Reserve chair but will not vote until a "bogus investigation" into Fed renovation work is resolved. The remarks add another political hurdle to the Fed nomination process but do not change policy rates or the economic outlook directly. Market impact is limited unless the confirmation timeline begins to materially slip.