Full Breakdown
Senate Banking Committee Advances Kevin Warsh’s Fed Chair Nomination
4/29/2026, 11:36:11 PM
Committee Vote Moves Warsh Closer to Fed Chair
On April 29 2026 the Senate Banking Committee voted 13-11 to advance President Donald Trump’s nominee, former Fed governor Kevin Warsh, to the full Senate. All 13 Republican senators supported the nominee; all 11 Democrats opposed. The vote clears the first hurdle before Warsh could replace Jerome Powell.
Context
President Trump has pressed Powell to cut rates, a demand that intensified after a DOJ criminal probe into Powell’s testimony on a costly Fed headquarters renovation. The probe was dropped on April 24, removing the obstacle that had led Republican Senator Thom Tillis to withhold his support for Warsh.
Official Statements
Committee chair Tim Scott said Warsh’s leadership is “absolutely essential now at the Federal Reserve.” Thom Tillis, after the DOJ’s decision, said he was confident the investigation was over and would support the nominee. Jeanine Pirro confirmed the probe’s closure. Warsh pledged to act “strictly independent” and said the president never asked him to predetermine any rate decision.
Criticism & Opposition
Ranking member Elizabeth Warren warned that confirming Warsh would bring the president “one step closer to completing his illegal attempt to seize control of the Fed.” Democrats argue Warsh’s close ties to Trump could erode monetary-policy independence.
Key Data & Uncertainties
Committee vote: 13-11 (Republican-Democrat). Warsh’s disclosed assets total $192 million; his wife Jane Lauder’s net worth is estimated at $2.5 billion. The Fed’s balance sheet stands at $6.7 trillion. Inflation peaked at 9.1 % in 2022 and is now about 3.3 %. The benchmark rate is reported at 3.5-3.75 % (some sources cite 3.6 %). One outlet listed the vote as 13-11, another as 14-10. The DOJ’s probe was dropped, but the Inspector General could still act.
Verbatim Quotes
- “Kevin Warsh's leadership is absolutely essential now at the Federal Reserve than ever before,” — Tim Scott, Senate Banking Committee Chair
- “The president never asked me to predetermine, fix or decide on any interest rate decision, nor would I ever do so,” — Kevin Warsh, nominee
- “The Trump economy is in real trouble. Inflation is up, job creation is down. The stink of stagflation is in the air, and President Trump is getting desperate,” — Elizabeth Warren, Ranking Member
- “I've got confidence that this investigation is over,” — Thom Tillis, Republican Senator
Why It Matters
Warsh has pledged a “regime change” to shrink the Fed’s $6.7 trillion balance sheet, adopt a new inflation-management framework, and change public communication. If confirmed, his openness to rate cuts could diverge from Powell’s cautious stance, affecting loan costs and testing the Fed’s independence.
What’s Next
The full Senate is expected to vote the week of May 11 2026. A confirmation before May 15 would let Warsh preside over the June 16-17 policy meeting. Powell may stay on the Board through 2028, limiting the new chair’s influence. Ongoing scrutiny of Warsh’s assets and any revived investigations will shape the confirmation debate.
