Warsh Clears Committee, Fed Chair Nomination Heads to Senate Vote
The U.S. Senate Banking Committee on Wednesday approved Kevin Warsh's nomination to lead the Federal Reserve, paving the way for a full confirmation vote in the Republican-controlled Senate. The vote was entirely partisan: 13 Republicans voted in favor and 11 Democrats voted against, the most partisan vote ever for a Fed chair nominee on the committee.
Democratic opposition was led by Senator Elizabeth Warren, who argued that Warsh's confirmation risked eroding the central bank's independence from the executive branch. Warren linked the issue to President Donald Trump's pressure on interest rate policy, alleging an attempt to increase political control over the Fed amid concerns about stagflation.
Warsh advanced after a major political hurdle was eased when the Justice Department dropped a criminal investigation into the Fed's headquarters renovation project—an issue that had previously led Senator Thom Tillis to threaten to withhold support. After the investigation was dropped, Tillis withdrew his objection, making Warsh's chances of passing the committee all but certain.
A full Senate vote is expected the week of May 11, meaning Warsh has a chance of being confirmed before Fed Chair Jerome Powell's term ends on May 15. With a 53-seat majority, Republicans only need a simple majority; cross-party support is said to be possible from Senator John Fetterman. (Arl)*
Source: Newsmaker.id
