Republican Senator Thom Tillis of North Carolina rejected a proposal on Thursday aimed at terminating the controversial Justice Department criminal investigation into Federal Reserve Chair Jerome Powell and clearing the path for the appointment of his successor, Kevin Warsh.

The proposed "settlement," put forward this week by at least one Republican lawmaker, sought to transfer the investigation of Powell from the Justice Department to the Senate Banking Committee.

This approach attempted a political balancing act: it would remove the threat of criminal prosecution against Powell—a threat which prompted Tillis, a member of the Banking Committee, to announce he would block Warsh's nomination—while also satisfying former President Trump, who supports the Justice Department's probe.

However, Tillis dismissed the proposal on Thursday morning.

"I will not accept any kind of investigation that is just for show," Tillis told reporters on Capitol Hill. "We must preserve the Federal Reserve's independence. This cannot be handled ambiguously."

"Either they proceed with a credible investigation that proves my previous judgment wrong, or they end the current investigation and move forward," he stated.

When asked about the specific proposal for the Banking Committee to take over the Justice Department's investigation, Tillis remained unmoved.

"Our role is oversight, not prosecution," he said.

Commenting on the White House having been unaware of the Justice Department investigation beforehand, Tillis remarked, "I believe the administration was surprised by this; they were not previously aware. But ultimately, if this matter is not resolved, I will not allow Warsh's nomination to proceed to the committee stage."

"And I believe most Democrats would not vote in favor either, so I see no possibility of it passing," he added.