finance
Senate Advances Kevin Warsh Nomination for Federal Reserve Chair
The Senate voted 49-44 on Monday night to advance Kevin Warsh's nomination to the Federal Reserve Board of Governors, clearing a key procedural step toward his expected confirmation as chair later this week. Democratic Sens. John Fetterman and Chris Coons joined Republicans in supporting the motion. Warsh would succeed the current chair whose term ends Friday.
May 12, 5:34 AM·2m read7 sources
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The Senate took a procedural step forward on Kevin Warsh's path to leading the Federal Reserve, advancing his nomination to the board of governors in a 49-44 vote Monday night. Democratic Sens. John Fetterman of Pennsylvania and Chris Coons of Delaware voted with 47 Republicans to move the nomination ahead after it had stalled in committee with no Democratic support.
The full confirmation vote for the board seat is expected Tuesday, with a separate vote to install him as chair potentially coming as soon as Wednesday. The action removes the final major obstacle for Warsh, a former Fed governor who served during the 2008 financial crisis.
North Carolina Republican Sen. Thom Tillis had placed a hold on the nomination last month but lifted it after the Justice Department dropped its investigation into the current chair's handling of agency renovations. Warsh is on track to take over as the central bank's term for its current chair concludes Friday.
Fetterman had previously signaled his backing for Warsh. Coons had not publicly committed and did not respond to a request for comment before the vote. The outcome marked a surprise degree of Democratic crossover on an issue that had divided strictly along party lines in committee.
Senators are now positioned to confirm the nomination later this week. The central bank faces pressure over interest rates even as external factors drive prices higher. The current chair has indicated plans to remain on the board as a governor until the administration's review of building renovations is completed.
Warsh would assume leadership of an institution whose decisions influence everything from employment levels to mortgage costs and are closely watched by financial markets.
Monday night's floor action represented the first full Senate test of support for the pick to replace the outgoing chair. Confirmation to the board requires a simple majority, after which a second procedural step would install him in the chair role.
