WASHINGTON — Sen. Thom Tillis said he will drop his hold on Kevin Warsh's nomination to lead the Federal Reserve, after the Department of Justice ended its investigation of Fed Chair Jerome Powell. The Senate Banking Committee planned to vote on Warsh's nomination on Wednesday.

"I am prepared to move on with the confirmation of Mr. Warsh. I think he's going to be a great Fed chair." Tillis said. He had effectively blocked the nomination in the Senate Banking Committee, where he previously described Warsh as having impeccable credentials at his confirmation hearing.

Tillis said he had received assurances from the Justice Department that the case was completely and fully settled, and that the only way an investigation would be reopened would be a criminal referral from a highly respected inspector general. He called the earlier inquiry by U.S. Attorney Jeanine Pirro a "vindictive prosecution" and said it threatened the Federal Reserve's independence from day-to-day politics.

The Justice Department's investigation had focused on Powell's oversight of multibillion-dollar building renovations at the Federal Reserve. The Federal Reserve's Office of Inspector General is scrutinizing the renovation project, with costs now at $2.5 billion, up from earlier estimates of $1.9 billion. Powell requested in July that the Office of Inspector General review the project.

In March, a federal judge blocked the Justice Department's subpoenas to the Federal Reserve, finding they were issued for the improper purpose of getting Powell to lower rates or resign. A prosecutor handling the investigation acknowledged at a closed-door court hearing that the government had not found any evidence of a crime.

President Donald Trump nominated Warsh in January. Warsh served on the Federal Reserve's board of governors from 2006 to 2011. At a hearing last week, he told senators he never promised the White House to cut interest rates and pledged to be "an independent actor" if confirmed as chair.

Sen. Elizabeth Warren said no Republican claiming to care about Federal Reserve independence should support moving forward the nomination, calling Warsh "nothing more than President Trump's sock puppet." The decision by Tillis clears a path for Warsh's Senate confirmation by May 15, when Powell's term as chair ends.