Senior Republican Senator Thom Tillis of North Carolina has told reporters that he understands why Federal Reserve Chair Jerome Powell may wish to remain on the Fed's Board of Governors for a brief period after his term as chair expires on May 15.

Tillis explained that such a stay would allow time for two pending matters to conclude: a review by the Fed's inspector general regarding construction projects, and an appeal by the U.S. Department of Justice following a federal judge's ruling to invalidate a subpoena.

Tillis, who decided this past Sunday to support the confirmation of Kevin Warsh, removed the final obstacle for the new Fed chair's appointment. He stated that the Justice Department's announcement on Friday to suspend its investigation and rely instead on the pending inspector general report had alleviated his long-standing concerns. Previously, he had firmly opposed confirming any Fed nominees before ongoing investigations were concluded.

Tillis also revealed that he remained in contact with Powell over the weekend to understand the Fed and its legal team's stance on recent developments.

Tillis told reporters he does not expect Powell to remain in his role "indefinitely," adding, "Hopefully the appeal won’t take too long, but I believe there is a reasonable basis for him to stay until then." After his term as Fed chair ends, Powell is entitled to remain as a regular board member until early 2028.