Powell Probe Just a 'Flex,' Say Senator Tillis

Speakers

Sen. Thom Tillis — US Senator (R-NC), Member of Senate Banking Committee

Jonathan — Interviewer

Lisa — Interviewer

Senator Tillis declares a blockade on all Federal Reserve nominees, specifically stalling the potential confirmation of Kevin Warsh, until the investigation into the "Powell Probe" is resolved.
Tillis views the investigation into Chair Powell as a political "flex" designed to force Powell to step aside before his term expires in May 2026.
The Senator argues that Fed independence is foundational to market certainty and refuses to allow the confirmation process to proceed while the current Chair is under what he deems a politically motivated investigation.

Ticker	Direction	Speaker	Thesis	Time
US TREASURIES /INTEREST RATES	WATCH	Sen. Thom Tillis US Senator (R-NC), Member of Senate Banking Committee	"I have no intention to allow any federal or nominee to move out of committee and be confirmed until the matter is settled... I am not going to confirm the next Fed Chair until I can be absolutely certain that these sorts of flexes do not always have members of the Federal Reserve Board... looking over their shoulder." The market is anticipating a transition in Fed leadership (potentially to Kevin Warsh). Tillis is explicitly freezing this process. While his goal is to protect Fed independence (keeping Powell in place), this introduces governance friction. It delays any policy shift associated with a new Chair and prolongs the current regime, adding political volatility to the yield curve. WATCH. The "Warsh Transition" is effectively paused. This reinforces the status quo (Powell) but increases headline risk regarding Fed governance. If the investigation is resolved quickly, the blockade lifts, and the market may rapidly re-price the probability of a new Chair.	0:17