The Senate Banking Committee voted Wednesday to send Kevin Warsh's nomination to lead the Federal Reserve to the full Senate, breaking a nearly two-month logjam just days after the Department of Justice closed its criminal investigation into current Fed Chair Jerome Powell.
The 13-11 party-line vote moves President Trump's pick one step closer to taking the helm at the central bank, though his confirmation had stalled amid the DOJ probe into Powell's handling of renovations at the Fed.
Senator Thom Tillis (R-N.C.), a committee member who had previously vowed to block Warsh, reversed course after U.S. Attorney Jeanine Pirro announced Friday she was ending the DOJ probe and referring the matter to the Fed's inspector general. Tillis said Sunday he would support Warsh, writing on X that the criminal investigation was a serious threat to Fed independence and had to be resolved before he could back the nominee.
Senator Elizabeth Warren (D-Mass.), the committee's ranking Democrat, sharply criticized the move. “Either the Republican majority is fooled easily or they are hoping to fool the American people,” she said in a statement, noting Pirro's warning that the probe could be reopened “should the facts warrant doing so.” Warren also pointed to an ongoing investigation into Fed Governor Lisa Cook, arguing that no Republican who claims to care about central bank independence should support Warsh, whom she called “nothing more than President Trump's sock puppet.”
Warsh faced tough questions during his confirmation hearing last week about preserving the Fed's independence, a flashpoint as Trump has repeatedly pressed for lower interest rates and feuded publicly with Powell. The Fed is widely expected to hold rates steady at its April meeting, which concludes Wednesday.
“I do not believe that independence of monetary policy is threatened when elected officials state their views on rates,” Warsh told the panel. “Fed independence is up to the Fed.” He also said Trump had not asked him to commit to any specific rate decision, though the president has said he would be disappointed if his pick did not cut rates immediately.
The Warsh nomination now heads to the full Senate, where Republicans hold a slim majority. The vote comes amid broader political turbulence, including an ongoing conflict with Iran and debates over defense spending. Hegseth and Caine faced House grilling on a $1.5 trillion defense budget as the Iran war hits 60 days, while gas prices have surged past $4.23 a gallon. Trump warned Iran to 'get smart' as nuclear talks stall, adding to the economic pressures that the new Fed chair will have to navigate.
Warsh's confirmation would mark a significant shift at the central bank, with implications for monetary policy and the ongoing tension between the White House and the Fed over interest rates.
