Story perspectives

Fed Holds Rates; Powell’s Final Meeting, Warsh Nominated

5/1/2026

Summary

Warsh Nomination Advances

The Federal Reserve kept its benchmark rate at 3.5%-3.75% on April 29 2026, Jerome Powell’s final chair meeting, while four FOMC members dissented and Governor Stephen Miran voted for a 0.25-point cut.
The Senate Banking Committee advanced Kevin Warsh’s nomination to replace Powell by a 13-11 vote.
Jerome Powell said he will stay a governor until 2028 and praised Warsh’s pledge to protect Fed independence.

Summary

Tillis Blocks

Senator Thom Tillis (R-N.C.) blocked Warsh’s confirmation vote until the Federal Reserve (Fed) Chair Jerome Powell probe ends.
Democrats decried the 13-11 Senate Banking Committee vote on April 29 as a White House power grab.
Senator Elizabeth Warren called Warsh a “sock puppet” and questioned his transparency on divesting over $100 million.
Democrats say Warsh could be the wealthiest Fed chair ever and doubt confirmation before Powell’s term ends May 15, 2026.

History

Historical Context

When President Bill Clinton reappointed Alan Greenspan as Federal Reserve chair in 1994, the Fed was also handling the 1994-1995 Mexican peso crisis, a test of its independence that foreshadowed Greenspan’s eventual five-term tenure. Today, Senators Thom Tillis and Elizabeth Warren’s opposition to Kevin Warsh’s nomination revives the same worry that political pressure could again compromise the central bank.

1 of 3

Warsh Nomination Advances

The Federal Reserve kept its benchmark rate at 3.5%-3.75% on April 29 2026, Jerome Powell’s final chair meeting, while four FOMC members dissented and Governor Stephen Miran voted for a 0.25-point cut.
The Senate Banking Committee advanced Kevin Warsh’s nomination to replace Powell by a 13-11 vote.
Jerome Powell said he will stay a governor until 2028 and praised Warsh’s pledge to protect Fed independence.

1 / 3