Warsh, Fed Chair Nominee, Passes First Stage of Senate Vote

Bloomberg News reported that U.S. President Donald Trump’s nominee for the next Chairman of the Federal Reserve, former Fed Governor Kevin Warsh, passed the first hurdle of Senate confirmation on the 11th (local time).

On the evening of the same day, the U.S. Senate approved the confirmation process for Warsh’s appointment as a Fed Governor with a vote of 49 to 44.

Kevin Warsh, former Fed Governor, nominated as the next Chairman of the U.S. Federal Reserve. Photo by Reuters Yonhap News

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Accordingly, a vote on Warsh's confirmation as a member of the Fed Board of Governors will take place on the 12th. Bloomberg reported that the final Senate vote to confirm Warsh as the next Fed Chairman is expected to take place later this week.

The current Fed Chairman Jerome Powell’s retirement date is the 15th. At the Federal Open Market Committee (FOMC) press conference on April 29, Chairman Powell stated that he would temporarily remain as a Fed Governor after his term as chairman ends.

Warsh’s confirmation was virtually assured. This was largely due to Republican Senator Thom Tillis of North Carolina, who had previously withheld his support for Warsh’s confirmation, reversing his position. He changed his stance after the U.S. Department of Justice announced it would drop its criminal investigation into Chairman Powell regarding the costs of repairs to the Fed building.

Among the Democrats, Senator John Fetterman of Pennsylvania and Senator Chris Coons of Delaware voted in favor of Warsh’s confirmation.

Previously, Democrats had opposed Warsh’s confirmation, arguing that he would fail to maintain the central bank’s independence in monetary policy. This opposition was fueled by President Trump’s public expression of his expectation that Warsh would lower interest rates if confirmed. Senator Elizabeth Warren of Massachusetts had criticized Warsh as President Trump’s “sock puppet.” However, Warsh has repeatedly emphasized that he would act independently if confirmed.