The Senate Banking Committee voted Wednesday to advance the nomination of Kevin Warsh as the next chair of the Federal Reserve. The decision moves his nomination forward to the full Senate for consideration.
The committee approved Warsh in a 13–11 vote split along party lines. All Republican members supported the nomination, while Democrats opposed it.
Warsh, a former Federal Reserve official, has been a vocal critic of the central bank’s recent policies. He has particularly questioned how the institution handled inflation in recent years.
He has argued that the spike in inflation, which reached 9.1 percent in 2022, represented a major policy failure. His views align with broader criticism from Donald Trump regarding interest rate decisions.
Warsh is expected to face a full Senate vote in the coming weeks. If confirmed, he would replace current chair Jerome Powell when Powell’s term ends.
At the same time, Powell has indicated he may remain on the Federal Reserve’s Board of Governors after his term as chair concludes. Such a move would be unusual but is permitted under the institution’s structure.
By staying on the board, Powell would limit the opportunity for a new appointment to that position. This has drawn criticism from some officials.
Scott Bessent questioned the decision, suggesting it departs from past norms. He commented on the issue during a media appearance.
Meanwhile, Warsh has expressed support for changes in leadership at the Federal Reserve. He has emphasized accountability and policy direction as key priorities.
Tim Scott, who chairs the Banking Committee, praised Warsh’s experience. He described the nominee as prepared to address economic challenges.
The vote came as the Federal Reserve announced it would keep interest rates unchanged. The decision maintained rates at approximately 3.6 percent.
This move again placed the central bank at odds with calls for lower rates. The debate over monetary policy continues to be a major issue in economic discussions.
Separately, a legal dispute involving the Federal Reserve has added another layer to the situation. A federal judge blocked an effort by the Justice Department to issue subpoenas related to Powell.
James Boasberg ruled that prosecutors did not provide sufficient evidence of wrongdoing. He suggested the subpoenas may have been intended to apply pressure.
The investigation was initiated by Jeanine Pirro and focused on Powell’s congressional testimony. Officials have indicated the ruling will be appealed, meaning the legal process is likely to continue.