Sen. Thom Tillis (R-NC) is making himself known to Trump officials, but not for the right reasons. The outgoing North Carolina Republican, who chose not to run for re-election, is reportedly a major obstacle to President Trump’s pick to chair the Federal Reserve, Kevin Warsh, who had his confirmation hearing this week. He will be replacing the outgoing Jerome Powell, who also has strained relations with Trump.
Tillis seemed poised to block this nomination over the federal investigation into the Federal Reserve’s renovation project, which the president alleged was fraught with malfeasance. Now, the DC US Attorney announced this probe has been shut down, paving the way for Tillis to get on board. Pirro will entrust the Federal Reserve inspector general with handling the rest of the investigation (via Fox Business):
BREAKING: US Attorney Jeanine Pirro orders office to close investigation into Federal Reserve over building project, potentially opening door to GOP Sen. Thom Tillis dropping hold on Trump nominee Kevin Warsh
— Fox News (@FoxNews) April 24, 2026
U.S. Attorney for the District of Columbia Jeanine Pirro announced Friday she directed her office to close its investigation into the Federal Reserve over a building project, a move that could lead a key Senate holdout to now vote to advance President Donald Trump's nominee for Fed chair.
Pirro said the Fed's inspector general, Michael Horowitz, would take over the investigation, moving it from the hands of federal prosecutors into those of a longtime government watchdog. The move relieves pressure on the central bank amid a fight over an anticipated leadership change in mid-May, when Fed Chairman Jerome Powell's term is set to end.
Retiring Sen. Thom Tillis, R-N.C., had been threatening to block Trump's chosen successor to Powell over the Department of Justice's probe.
"This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns – in the billions of dollars – that have been borne by taxpayers," Pirro wrote on X. "The IG has the authority to hold the Federal Reserve accountable to American taxpayers. I expect a comprehensive report in short order and am confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas."
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Pirro's comments come after Powell revealed in a video announcement in January that the Department of Justice had opened an investigation into the Fed, calling it an unprecedented attempt to use "intimidation" to force him to lower interest rates.
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Horowitz, who will now investigate the Fed building renovation costs, had drawn a mix of praise and criticism from Republicans while serving as DOJ inspector general for more than a decade. He was one of the few high-profile inspectors general spared during Trump's historic cull of government watchdogs last year and has found allyship in key figures like House Judiciary Committee Chairman Jim Jordan, R-Ohio.
We’ll see what happens. I’m sadly expecting more drama.