Kevin Warsh’s nomination to lead the Federal Reserve has advanced out of the Senate Banking Committee today, moving President Donald Trump’s pick closer to a full Senate confirmation vote.
According to reports, the committee voted 13-11 along party lines, with Republicans supporting Warsh and Democrats opposing him. The vote came hours before Jerome Powell was scheduled to hold what may be his final press conference as Federal Reserve chair.
Warsh, a former Federal Reserve governor, is now expected to face a final vote in the Republican-controlled Senate. The vote could take place during the week of May 11, before Powell’s term expires on May 15.
Kevin Warsh Nomination Moves to Full Senate
The Senate Banking Committee’s approval gives Warsh a clear path to the next stage of the confirmation process. All Republican members of the panel voted in favor, while all Democrats voted against the nomination.
The partisan split reflects wider political tension around the Federal Reserve, interest rates, and central bank independence. Sen. Elizabeth Warren, the committee’s top Democrat, criticized the nomination before the vote and said Warsh’s confirmation would increase White House influence over the Fed.
Republicans backed Warsh as a qualified nominee with prior central bank experience. His nomination had faced uncertainty after Sen. Thom Tillis raised concerns over a Justice Department investigation involving Powell and the Fed.
Tillis later said he would no longer oppose the nomination after the Justice Department dropped the probe. His support helped clear the way for Warsh to move forward.
Jerome Powell Prepares for Final Fed Briefing
The committee vote took place on the same day the Federal Reserve was expected to announce its latest interest rate decision. Powell was also scheduled to speak to reporters at 2:30 p.m. ET.
Markets widely expect the Fed to keep rates unchanged at 3.50% to 3.75%. Inflation remains above the central bank’s comfort zone, while the labor market has shown enough stability to support a cautious policy stance.
Higher oil prices linked to the Iran conflict have added another concern for policymakers. Energy costs can feed into inflation expectations and make rate cuts harder to justify.
Trump has repeatedly pressed Powell to cut rates faster. Powell has maintained that Fed decisions are guided by inflation, employment, and economic data rather than political demands.
Fed Independence Debate Intensifies
Warsh’s nomination has become part of a broader debate over the future direction of U.S. monetary policy. Democrats have warned that the White House is seeking greater control over the central bank, while Republicans have argued that the nomination follows the regular confirmation process.
The Justice Department investigation into Powell had added pressure to the process. The probe reportedly focused on cost overruns tied to renovations at the Fed’s Washington headquarters. Powell said earlier this year that the investigation was linked to the administration’s frustration with interest rate policy.
The Justice Department later ended the criminal probe, though Warren said the issue could return through a separate inspector general review. Tillis rejected that concern and said he believes the matter is closed.
If confirmed, Warsh would take over the Fed at a time of economic uncertainty. Policymakers are facing sticky inflation, pressure from energy markets, slower job growth concerns, and political demands for lower borrowing costs.
The full Senate vote will determine whether Warsh becomes the next Fed chair before Powell’s term ends. His confirmation would mark a major leadership change at the central bank as markets watch for any shift in rate guidance.
Source: https://coinpaper.com/16709/us-senate-clears-kevin-warsh-fed-chair-nomination-ahead-of-jerome-powell-last-press-briefing
