U.S. Senate panel advances Kevin Warsh Fed chair nomination

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Senate advances Warsh Fed nomination

Highlights

Senate Banking Committee advanced Kevin Warsh's Fed chair nomination to the full Senate in a 13-11 party-line vote on Wednesday.
Sen. Thom Tillis supported Warsh after the DOJ dropped a probe into Jerome Powell, whose term as chair ends next month.
Fed independence remains a key issue as White House influence concerns and Warsh's digital asset views, including support for bitcoin, shape the confirmation debate.

Committee vote and nomination path

The Block reported that the Senate Banking Committee voted on Wednesday to advance Warsh's nomination to the full Senate for a final vote, with the measure passing 13-11 along party lines. Committee Chair Tim Scott said after the vote that Warsh's leadership is essential at the Federal Reserve.

The nomination follows a hearing last week in which Warsh faced extensive questioning on interest rates, an issue that remains contentious between President Donald Trump and current Federal Reserve Chair Jerome Powell. Sen. Thom Tillis, who had previously said he would withhold support until a Department of Justice investigation involving Powell concluded, ultimately backed the nomination after the DOJ dropped the probe last week.

Powell's term as chair ends next month, although he would remain on the Board of Governors. Wednesday also coincides with what is likely Powell's final policy meeting as chair.

Fed independence and digital asset focus

Democratic committee leader Elizabeth Warren opposed the nomination and warned that supporting Warsh would help Trump seize control of the Fed and artificially boost the economy. She also questioned whether scrutiny of Powell had truly ended, while Tillis said he is confident the investigation is over.

The confirmation process is unfolding amid broader concerns about White House influence over the central bank, after Trump openly discussed removing Powell and previously attempted to dismiss Federal Reserve Governor Lisa Cook. That political backdrop is likely to keep Fed independence at the center of the full Senate debate.

Warsh also told lawmakers last week that digital assets are already embedded in financial services. The former Morgan Stanley banker served on the Federal Reserve's Board of Governors from 2006 to 2011 under Presidents George W. Bush and Barack Obama, and he has described bitcoin as an important asset that can help inform policymakers.

Our earlier report on Senate Democrats’ scrutiny of Kevin Warsh’s Fed chair nomination described how lawmakers led by Elizabeth Warren pressed him for fuller written answers ahead of the Senate Banking Committee markup. It highlighted concerns over Federal Reserve independence amid Trump’s pressure, as well as questions about Warsh’s financial disclosures, potential conflicts, and his positions on investigations involving Jerome Powell and Lisa Cook.

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