Jerome Powell’s successor Kevin Warsh resigns from the Senate Banking Committee
Forbes Media chairman and editor-in-chief Steve Forbes discusses the Justice Department’s decision to close its investigation into Federal Reserve Chairman Jerome Powell on ‘The Bottom Line.’
Appointment of Kevin Warsh becoming the next chairman of the Federal Reserve took a big step forward Wednesday after a key committee voted to advance his nomination after a senator raised his objections.
Members of the Senate Banking Committee voted 13-11 to send Warsh’s nomination to the full Senate for a possible confirmation vote soon.
Warsh, a former Federal Reserve governor who served at the central bank from 2006 to 2011, has been appointed to the position of current Fed Chairman. Jerome Powellhis term as chairman ends on May 15, 2026.
The appointment was raised after Sen. Thom Tillis, RN.C., vowed to block Warsh’s nomination despite supporting it because of the Justice Department’s investigation into Powell’s testimony about the Fed’s most expensive stimulus project, which he viewed as politically motivated.
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The nomination of Kevin Warsh as chairman of the Federal Reserve moved forward on Wednesday. (Graeme Sloan/Bloomberg via Getty Images)
Tillis said the investigation is undermining central bank independenceand the DOJ withdrew as US Attorney for the District of Columbia Jeanine Pirro closed her office’s investigation on Friday, when the Fed’s inspector general, Michael Horowitz, took over.
Tillis said the investigation “is a serious threat to the Fed’s independence, and it has to end before I can support it.” Confirmation of Kevin Warsh.”
Democrats opposed Warsh’s nomination, with Rep. Elizabeth Warren, D-Mass., saying Wednesday that it would “bring the president one step closer to completing his illegitimate attempt to take control of the Fed and illegally sink the economy.”
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Warren also criticized Warsh as “uniquely incompetent” during his previous tenure as Fed governor. He also added that to his tribe, “Mr. Warsh dug a hole deep. He had a chance to show his freedom to Mr. Trump, and he couldn’t do it. Mr. Warsh is a sock puppet who is so afraid of the president that he couldn’t even say that Donald Trump lost the 2020 election.”
“Look, I don’t agree with everything the member said,” Tillis said after the vote in response to Warren’s comments.
Sen. Thom Tillis, RN.C., criticized the DOJ’s investigation into Powell and said he would delay Warsh’s nomination until it is concluded. (Nathan Posner/Anadolu via Getty Images)
“It is no secret that the reason Mr. Warsh’s appointment has been suspended is because of my concerns about the investigation,” he explained. “I want to thank the Ministry of Justice for the assurances you have made. They are continuing to appeal the case. Appealing the case does not affect the reopening of the investigation. They have an issue they want to address, that’s fine with me.”
“I hope this investigation is over,” Tillis said, adding that Horowitz is “one of the best investigators in the entire government” and has the ability to prosecute if needed. “But the truth is, this was based on two minutes of evidence, it wasn’t a crime… Senator Warren, I get that you’re trying to score political points, but you’re wrong on every point you just made.”
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With Senate Banking Committee now that Warsh’s nomination has been advanced, the full Senate can now hold a confirmation vote in the near future.
Depending on how quickly senators take up the nomination, Warsh could be confirmed as Fed chairman in time to preside over the central bank’s policy meeting in June.
Federal Reserve Chairman Jerome Powell has not said whether he will end his term as a member of the Fed’s Board of Governors. (Amanda Andrade-Rhoades/Reuters)
Although Powell’s term as chairman will end next month, he may choose to spend his remaining time as a board member. The Board of Governors of the Fedcontinuing until Jan. 31, 2028.
Powell will speak at a press conference Wednesday afternoon after the Federal Open Market Committee – the Fed’s panel responsible for monetary policy – announces its next interest rate decision.
Policy makers are expected to leave their rate unchanged at the current target range of 3.5% to 3.75% in concerns about inflation.
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The press conference, which will begin around 2:30 pm ET, is expected to be Powell’s last as Fed chairman.
