Republican Senator Thom Tillis Talks Kevin Warsh, Federal Reserve

Summary

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Podcast Summary: Republican Senator Thom Tillis Talks Kevin Warsh, Federal Reserve

Podcast: Bloomberg Talks
Episode Date: January 30, 2026
Host(s): Jonathan, Lisa, Anne Marie (Bloomberg)
Guest: Senator Thom Tillis, North Carolina

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Overview of Main Theme

This Bloomberg Talks episode features an in-depth conversation with Republican Senator Thom Tillis regarding the White House’s nomination of Kevin Warsh to succeed Jerome Powell as Federal Reserve Chair. The discussion centers on Tillis’s previously stated vow to block any Fed nomination until current DOJ and Supreme Court investigations involving Federal Reserve members are resolved. Senator Tillis provides insight into his reasoning, expectations, and views on the independence of the Federal Reserve during politically charged processes.

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Key Discussion Points & Insights

1. Reaction to Kevin Warsh’s Nomination

• Positive on Warsh’s Credentials: Senator Tillis expresses satisfaction with Warsh’s qualifications, noting his strong reputation within the economic community.
  • “I am pleased with the nominee. I think that by most accounts he's well regarded.” (00:45)
• Process Still Stalled: Despite the nomination, Tillis reiterates his commitment to delay confirmation processes until ongoing investigations (notably involving current Chair Powell and Governor Lisa Cook) are resolved.

2. DOJ and Supreme Court Investigations as Obstacles

• Investigation Into Powell: Tillis cites the DOJ’s pursuit of a case involving alleged criminal intent by Powell (which he sees as groundless) as his reason for blocking Fed nominations.
  • “They're pursuing on the basis of criminal intent testimony... that clearly had no criminal intent.” (00:54)
  • Frustrated about the DOJ’s role: “Some assistant U.S. attorney with a dream in the D.C. district should really determine whether…this frivolous prosecution is worth holding up a Fed board seat.” (00:54)
• Lisa Cook Supreme Court Case: Tillis also includes the case involving Governor Cook as another blockage, referencing a paperwork error predating her time on the board.
  • “Do you also need to see [the Cook case] wrapped up… to move forward?”
  • “Yeah, I do. I mean, because… we're talking about what looks like a paperwork error… My goodness, guys…” (03:23)
• Maintaining Senate’s Role: He positions his actions as necessary to preserve the independence of the Federal Reserve by not letting political or legally dubious allegations dictate leadership transitions.
  • “We have to make sure that the Fed maintains its independence and we cannot reward any bad behavior that seems like it's surely motivated not by the substance of the allegations, but by the interest in trying to undermine the Fed independence.” (04:54)

3. Fed Functionality and Succession Concerns

• Fed Will Continue Operating: Tillis notes the Fed board will still have a working quorum even if the chair role becomes temporarily vacant, and shifts responsibility to the administration for managing leadership transitions.
  • “Whether or not they have an acting chair is a decision that the president… and others can look at. But that's not my problem. We're here because of them.” (01:38)
• Market and Business Community: Emphasizes that his stance sends a signal upholding Fed independence, critical for market confidence.
  • “This is all about sending a signal to the markets and to the business community that Fed independence is critically important.” (04:29)

4. On Kevin Warsh's Policy Leanings and Fed Independence

• Warsh’s Reputation: Tillis views Warsh as a proven independent with a deep understanding of monetary policy, not likely to simply follow administration wishes.
  • “Walsh is a good independent. He's got an extraordinary reputation… I don't believe he comes in, is more or less going to do the bidding of the administration, which is critically important…” (06:08)
• Independence of Board Members: Open to “hawkish” (inflation-preventing) perspectives, supports diversity of economic viewpoints.
  • “You could have hawkish members like Waller and others… that's fine with me on the board to stretch the thinking…” (06:08)

5. Expectations on Resolution Timeline

• No Clear Timetable: Cautions that investigations can drag on, potentially outlasting Powell’s own term.
  • “Investigations can go on forever… you could see this going on for two years…” (07:34)
• Signals from Administration: Suggests that putting forward Warsh’s nomination may indicate the administration is seeking a resolution.
  • “The fact that they're putting forward this nominee knowing that it would be impossible to get him through with the current position that I've taken, it suggests to me that maybe they are trying to find a way to… deal with this.” (08:07)

6. On Communications and Transparency

• Declines Specifics: Tillis repeatedly declines to share details of private conversations with the DOJ or White House but confirms he frequently communicates with the administration.
  • “I have ongoing discussions. The president and I probably communicate once or twice a week, at least through text… but I'm not going to talk about the content.” (08:42)
• Groundhog Day Reference: Jokes about repeatedly being asked similar questions, referencing the movie “Groundhog Day.”
  • “Kind of like Groundhog Day. I'm going to answer the same question every day the same way.” (08:55)

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Notable Quotes & Memorable Moments

• On blocking nominations:
  • “I will not move forward…this is all about sending a signal to the markets and to the business community that Fed independence is critically important.” (04:29)
• On DOJ investigation and political motivations:
  • “Some assistant U.S. attorney in D.C. district decided to put us here and they've got to determine if they have a case that's worth pursuing.” (01:38)
• On Fed independence:
  • “We have to make sure that the Fed maintains its independence and we cannot reward any bad behavior that seems like it's… motivated…by the interest in trying to undermine the Fed independence.” (04:54)
• On Warsh's independence:
  • “I don't believe he comes in, is more or less going to do the bidding of the administration, which is critically important…” (06:23)
• On the government process:
  • “This is actually democracy and institutional separation at its finest. We have a disagreement and we have a mechanism in place for resolving this and moving on.” (07:12)
• Groundhog Day reference:
  • “Kind of like Groundhog Day. I'm going to answer the same question every day the same way.” (08:55)

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Timestamps for Important Segments

• 00:45: Tillis’s views on Warsh as a nominee
• 01:38: On the process and responsibility for Fed leadership
• 03:23: On the necessity to resolve both Powell and Cook cases
• 04:29: Rationale for blocking nominations—market signal and Fed independence
• 06:08: Addressing Warsh’s policy leanings and assurance of independence
• 07:12: Democracy and process functioning as intended
• 07:34: Cautions around the timeline and possible indefinite delay
• 08:07: Reading into administration’s motivations behind nominating Warsh
• 08:42: Acknowledgement of ongoing, confidential communications with the White House

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Conclusion

This episode offers a transparent look at Senator Tillis’s stance on Federal Reserve nominations in the wake of ongoing legal proceedings. He repeatedly points to the critical need for the Federal Reserve’s independence, signaling to both markets and political observers the significance of process over expedience. While he positively assesses Warsh’s nomination, his commitment to blocking any confirmation until investigations are settled remains steadfast. Throughout, Tillis projects a tone of institutional stewardship and political firmness, sprinkled with personal candor and a hint of humor.

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Transcript

[Michael McDermott]

At CES. Michael McDermott, EVP of Samsung, spoke with Bloomberg Media Studios about what the company calls its next AI Chapter, your companion to AI Living. It's a shift from AI as a feature to AI as a trusted partner in everyday life.

[Jonathan]

Bloomberg Audio Studios Podcasts, Radio news the senator standing by. Let's get to him right now. Senator Thom Tillis from North Carolina joins us. More for more. Senator, welcome to the program. So you had been vowing to block any nomination to the Federal Reserve until the DOJ wraps up its investigation. We have some news this morning. As you know, Kevin Walsh has been nominated by the President of the United States to succeed Chairman Powell. Does it change anything for you, sir?

[Senator Thom Tillis]

No, it does. I am pleased with the nominee. I think that by most accounts he's well regarded. But we still have to clear the current matter. Look, they're pursuing a on the basis of criminal intent testimony and a Banking Committee hearing that clearly had no criminal intent. So to me, you got some assistant U.S. attorney with a dream in the D.C. district that should really determine whether or not this frivolous prosecution is worth holding up a Fed board seat.

[Jonathan]

Senator, we have some time between now and May for that investigation to go away and for the confirmation process to open up. Have you given thought to what would happen if we don't have that time? We get to May, this is still lingering and the chairman steps away. What happens to the top of the Federal Reserve?

[Senator Thom Tillis]

Well, I think that we all need to understand we still have a working quorum of members. Whether or not they have an acting chair is a decision that the president and assume the Treasury Secretary and others can look at. But that's not my problem. We're here because of them. We're not here because of me. And so I think they should work expeditiously if they really do. I'm not an attorney. I watch a lot of crime shows. But does it look like there was any criminal intent here? They have to determine whether or not it's worth grinding this out. Like I said, I didn't put us here. Some assistant U.S. attorney in D.C. district decided to put us here and they've got to determine if they have a case that's worth pursuing.

[Lisa]

Senator Tillis, has anyone from the administration or the Department of Justice reached out to you about the process of how this could go down or giving you confidence that this will be dropped in time for the confirmation hearing to go forward?

[Senator Thom Tillis]

Well, Lisa, I never talk about my conversations with any members. People always ask me what goes on at lunch. I just don't have those conversations, but my public statements stand for themselves.

[Anne Marie]

Is closing the investigation enough, Senator, or do you need other assurances that you think this administration is going to respect the Fed independence?

[Senator Thom Tillis]

Well, right now I think you do that by making a judgment. Look, we've got two cases here, right? We've got the Cook case and we have the Powell case. Both of those, to me, are instances, independence. And I'm staying focused on that one goal. I'm not really persuaded or even willing to entertain any discussions that take me off that goal.

[Anne Marie]

Ok, but you just mentioned the Lisa Cook case. Do you also need to see that wrapped up either by the, by the Supreme Court in order to move forward?

[Senator Thom Tillis]

Yeah, I do. I mean, because, look, I mean, we're talking about what looks like a paperwork error or if there was, if there was a mistake long before she was confirmed for the board. Like, my goodness, guys, I mean, I don't know, maybe Pulte or somebody thought that that was cute. I didn't.

[Anne Marie]

So, just to be clear, it is not just the DOJ investigation to the Fed that you need wrapped up. You also need the Supreme Court case wrapped up. So that's two issues right now and blocks for you to move forward with Kevin Warsh.

[Senator Thom Tillis]

Yeah, well, no, let me, let me bifurcate these. One is moving forward with another, that the case that will prevent me considering any board nominee is the Powell case. But I will not move forward. So for the, for the Fed chair, which we know expires and in February, the other case we have, you know, the Myron term is about to expire because he was filling up and, you know, basically six weeks or, I'm sorry, six months. We've got the Cook seat. Those are ones that are really going to be. I'll take a look at the candidate, I'll take a look at how it would affect the board. Look, this is all, in my opinion, this is all about sending a signal to the markets and to the business community that Fed independence is critically important. And going after the chair, I think took a stool out of the foundation of people's confidence or a lag out of the stool. In the case of Cook, I do believe that it's another example of a trend and the Senate has to stand in the breach. We have to make sure that the Fed maintains its independence and we cannot reward any bad behavior that seems like it's surely motivated not by the substance of the allegations, but by the interest in trying to undermine the Fed independence.

[Jonathan]

Senator, what's your understanding as to Whether the Federal Reserve is cooperating with that investigation. Some conflicting reports over the past few days. What's your read on the situation?

[Senator Thom Tillis]

I, you know, I'm not really sure, Jonathan. I, I'm going to leave that. That's a better question to ask the administration or the doj.

[Jonathan]

What if we get the opportunity to speak to them? I'm sure we'll ask. I've got the opportunity to ask you about the man and not just the process. You said this morning, and you said that Kevin Walsh is a qualified nominee with a deep understanding of monetary policy. For those familiar with Kevin Walsh and his time at the Federal Reserve back in the financial crisis, they have considered him to be on the more hawkish side of the spectrum on the fomc. And there is some debate this morning, Senator, about what Kevin Walsh actually stands for. Given that we know the President wants lower interest rates. What's your understanding of what he stands for?

[Senator Thom Tillis]

Well, you know, I, with Chair Powell, I haven't agreed with all of his opinions. I'm not in a economist or his positions, and sometimes I may be more hawkish than Chair Powell. So coming in, I think, I think Walsh is, is a good independent. He's got an extraordinary reputation and a community of economists and, and people focused on the Fed. I don't think that he would want to destroy his reputation by being independent. You know, you could have hawkish members like Waller and others, and I'm fine with them on the board to stretch the thinking, but I don't believe he comes in, is more or less going to do the bidding of the administration, which is critically important, and incidentally, I should say it's critically important for the health and hygiene of the administration.

[Lisa]

Senator Tillis, does this give you any more confidence that actually the independence of the Federal Reserve will not be undermined, that this actually is going to be a proper process once some of the roadblocks you're talking about are going to be cleared?

[Senator Thom Tillis]

Yeah, I think so, Lisa. And look, this is, this is actually democracy and institutional separation at its finest. We have a disagreement and we have a mechanism in place for resolving this and moving on. I hope that no one in the administration takes personal offense to this. I'm doing my job.

[Anne Marie]

Senator, do you have any understanding of the timeline?

[Senator Thom Tillis]

Well, you know, the investigations can go on forever. I mean, you could see one scenario where Chair Powell has two years left on his term even after he comes off the board. So, I mean, you could see this going on for two years, or in.

[Anne Marie]

My case, 339 days, because 339 days. That's when you're going to be retiring. And I know Lisa asked you if you've had any conversations. I want to ask you about those conversations, but have you seen any indications from anyone that they do want to wrap up the DOJ investigation as soon as possible?

[Senator Thom Tillis]

Well, you know, I think, Anne Marie, I think that the fact that they're putting forward this nominee knowing that it would be impossible to get him through with the current position that I've taken, it suggests to me that maybe they are trying to find a way to. To deal with this. It could be adjudicated expeditiously, or it could be just determining that. They also agree that there was no criminal intent. And the chair's testimony and the Banking Committee that I participated in.

[Jonathan]

Senator, just quickly, have you spoken to the White House? Have they reached out?

[Senator Thom Tillis]

You know, like I said, I have ongoing discussions. The president and I probably communicate once or twice a week, at least through text, so I have ongoing discussions. I'm not going to talk about the content of Jonathan. Kind of like Groundhog Day. I'm going to answer the same question every day the same way.

[Anne Marie]

Good movie. I heard.

[Jonathan]

Senator, we appreciate your time. Thanks for jumping on the call. Thank you, sir. Thank you very much. Senator Thom Tillis there on his way to the gym. The Senator made me watch Groundhog Day.

[Michael McDermott]

How do you shift AI from being a flashy feature to a trusted partner in consumers everyday lives on the ground at CES Bloomberg Media Studios, asked Michael McDermott, EVP of Samsung. Our 2026 vision is built around an AI companion. It understands you and responds intuitively. This intelligence works quietly in the background across TVs, home appliances and mobile devices. By putting AI at the center of everything we do, we're simply improving everyday life for everyone everywhere.