GOP senator says he’s open to compromise on Trump’s nominee to chair the Federal Reserve

WASHINGTON — Republican Sen. Thom Tillis from North Carolina suggested Thursday he could support a compromise that would allow the Senate Banking Committee to start hearings on Kevin Warsh, President Donald Trump’s nominee to chair the Federal Reserve.

“What I heard being floated could be an off-ramp,” Tillis told reporters Thursday after a meeting of Senate Republicans. The compromise that has been suggested is for the banking committee, rather than the Justice Department, to investigate cost overruns on the Fed’s $2.5 billion renovation of two Washington, D.C., office buildings.

Tillis said last month that he would block any consideration of Warsh or any other Trump nominees to the Fed until the Justice Department drops a criminal investigation of Fed chair Jerome Powell over his testimony last summer about the renovation. Tillis on Thursday reiterated that view in comments on the Senate floor.

The investigation was revealed last month by Powell in an unusually blunt video statement, in which he said it was part of an effort by the Trump administration to force the Fed to lower its key interest rate. The Justice Department has subpoenaed Powell over comments he made about the building renovation during testimony before the banking committee last June.

“I will not allow any board member for the Federal Reserve to go through the banking committee, for chair or replacement of expired terms, until this matter is settled,” Tillis said.

“I have no problem with us having an investigation,” he added, “like we should with so many other areas of government. I’d like to have oversight for the East Wing construction, to make sure that stays on target and doesn’t go over budget.”

The Trump administration last year tore down the East Wing of the White House to add a large ballroom.