Federal Reserve Chair nominee Kevin Worshi attends a confirmation hearing in the U.S. Senate [Photo courtesy of AFP/Yonhap News]

A U.S. Republican senator who had opposed the confirmation of Kevin Worshi, the nominee for U.S. Federal Reserve (Fed) chair, has announced he will withdraw his opposition, paving the way for Worshi's confirmation.

Senator Thom Tillis (Republican-North Carolina), a member of the Senate Banking Committee, said on NBC's "Meet the Press" on April 26 (local time), "I'm ready to move forward with his nomination. I think he'll be a great Fed chair."

He added, "I needed assurance that the Department of Justice would not be used as a weapon to threaten the independence of the Fed, and I've received that assurance from the DOJ," and "As a result, Worshi will be able to proceed with the confirmation process in a timely manner."

Tillis had previously stated that he would not cooperate with Worshi's confirmation until the DOJ investigation into current Fed Chair Jerome Powell was withdrawn.

The Senate Banking Committee, composed of 24 members (13 Republicans and 11 Democrats), would be unable to advance the nomination bill through the committee if even one Republican member, like Tillis, maintained their opposition, given that all Democratic members are against it.

U.S. Senator Thom Tillis [Photo courtesy of UPI/Yonhap News]

The DOJ had drawn controversy by pursuing an investigation targeting Powell regarding the issue of excessive spending on the renovation of the Fed's headquarters. Within political circles and Wall Street, there have been interpretations that the DOJ's investigation was an attempt to pressure Powell, who had not complied with President Donald Trump's demands for a reduction in interest rates.

However, the DOJ officially announced on April 24, just three days after Worshi's confirmation hearing, that it was concluding the related investigation.

With Powell's term as chair set to end on May 15, the White House and Republican leadership are expected to complete the confirmation process before then.

Separately from his term as chair, Powell's term as a Fed governor runs until January 2028. Powell had previously stated his intention not to step down from his position as a Fed governor while the DOJ investigation against him was ongoing.

However, with the DOJ investigation halted and Worshi's confirmation path cleared, it has become more likely that Powell will step down from both his chairmanship and his governorship next month on the 15th.

Nevertheless, some on Wall Street suggest that Powell might attempt to retain his governorship if there remains a possibility of the DOJ resuming its investigation into him after his departure from the governor's position.

Powell has stated, "I have not made a decision," regarding whether he will remain as a governor even after the investigation concludes, maintaining a non-committal stance.