UPDATE 1-Trump's pick to lead Fed faces early hurdle from Republican senator

President Donald Trump's pick of Kevin Warsh to lead the Federal Reserve is running ‌into opposition from within his own party in Congress, as at least one Republican senator confirmed on Friday he will oppose the confirmation if the Justice Department's investigation of U.S. central bank chief Jerome Powell continues.

Senator Thom Tillis, a North Carolina Republican, said in a post on X that he will continue to "oppose the confirmation ⁠of any Federal Reserve nominee, including for the position of Chairman" until the Justice Department's inquiry into Powell is "fully and transparently resolved." Tillis, who is not running for re-election in 2026, sits on the Senate Banking Committee, which is in charge of Fed confirmations. The committee has a narrow 13-11 Republican majority, so losing just one vote could hold up the process of getting the nomination before the full Senate, where Republicans have just a three-vote majority.

The basis of ​the inquiry into Powell stems from remarks last year to the committee about cost overruns at a building renovation project at the Fed's headquarters complex in Washington. The Justice Department served Powell with a grand jury subpoena ‍earlier this month, the Fed chief said. Powell has denied any wrongdoing and described the probe as a "pretext" to pressure the central bank on monetary policy. Trump has demanded that the Fed deliver big interest rate cuts to help stimulate the economy.

"The Department of Justice continues to pursue a criminal investigation into Chairman Jerome Powell based on committee testimony that no reasonable person could construe as possessing criminal intent," Tillis said. "Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable." At least one other Republican, Senator Lisa Murkowski ⁠of Alaska, has ‌previously said she would not back a Trump nominee to ⁠the Fed while the DOJ probe is underway.

SOME REPUBLICANS CRITICAL OF TRUMP'S PRESSURE ON FED Tillis' block is the latest in a back-and-forth of barbs with the president. Trump, in an ABC News interview on Wednesday, called Tillis and Murkowski "losers" after their criticism of his administration's immigration ‍enforcement operation in Minnesota.

Tillis has been more outspoken since he announced he would not seek re-election in the 2026 midterm elections. He made that decision after breaking with Trump last year over the administration's tax-and-spending bill, citing concern about the impact on ​North Carolina, a competitive battleground state with both Republican and Democratic statewide leaders. The North Carolina senator's current opposition does not mean the Warsh nomination will not ultimately be successful, as Tillis complimented the ⁠former Fed governor in his post on Friday and left room for eventual support if the Justice Department changes course.

Republican senators in Trump's second term have given wide latitude for the president's nominees. But Tillis and a small group of Republican senators critical of Trump's attempts to influence the ⁠Fed have stressed the importance of maintaining the central bank's independence in the face of the Trump administration's criticism and investigations into Powell and Fed Governor Lisa Cook. Trump attempted to fire Cook from the central bank, and the U.S. Supreme Court last week heard arguments on the legality of that move.

It is unclear when Warsh's confirmation hearing will be held, but Senator Tim Scott, a South Carolina Republican who chairs the banking committee, welcomed ⁠the pick and said he intends to hold "a thoughtful, timely confirmation process" for the nominee. Other Republicans on the committee, such as Senator Bernie Moreno of Ohio, called Trump's pick "phenomenal" and said Warsh "will restore independence to ⁠the Federal Reserve."

Democrats on the committee are expected to ‌be critical of Trump's pick. "This nomination is the latest step in Trump's attempt to seize control of the Fed," Senator Elizabeth Warren, the committee's senior Democrat, said in a statement.

"Donald Trump said anybody who disagrees with him will never be Fed Chairman. Former Fed Governor Kevin Warsh – who cared more about helping Wall Street after the ⁠2008 crash than millions of unemployed Americans – has apparently passed the loyalty test," Warren said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)