The Senate banking committee voted on Wednesday to approve Kevin Warsh as the successor to replace Fed Chair Jerome Powell. Senator Thom Tillis was the decisive vote, backing Warsh after the Justice Department ended its probe into Fed Chair Jerome Powell last week. Tillis previously stated that he would hold off on confirming Warsh until the investigation concluded.
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New trading tool for QQQ bullsWarsh must now receive approval from the full Senate before he is able to become the next Chair. Powell’s term as Chair is scheduled to end on May 15, although his term on the Fed’s Board of Governors lasts until January 31, 2028.
Warsh is Trump’s ‘Sock Puppet,’ Says Warren
All Democrats within the committee voted against confirming Warsh, although he was still able to receive the majority vote. Senator Elizabeth Warren labeled Warsh as Trump’s “sock puppet” and a “uniquely unfit candidate” and walked out of the chamber.
The Fed is set to make its next interest rate decision at 2 p.m. Eastern Time today in what will be Powell’s last meeting leading the central bank. The Fed is widely expected to hold rates steady, with the CME FedWatch tool suggesting this stance will likely persist through year-end.