Senate panel advances Kevin Warsh to full Senate vote

The Senate Banking Committee on Wednesday voted 13-11, along party lines, to advance Kevin Warsh’s nomination for Federal Reserve chair to the full Senate for a final confirmation vote.

Committee Republicans supported the nomination. Committee Chair Tim Scott, R-S.C., urged colleagues to confirm Warsh, describing his leadership as “absolutely essential” for the Federal Reserve.

Democrats opposed the nomination, citing concerns about presidential influence over the central bank and ongoing questions tied to a Justice Department inquiry into current Fed Chair Jerome Powell. Senator Elizabeth Warren voiced opposition on the committee and said voting to confirm Warsh would allow the White House to “seize control of the Fed and artificially juice the economy,” adding that “no one is fooled.”

Kevin Warsh served on the Federal Reserve’s Board of Governors from 2006 to 2011 and previously worked as an investment banker at Morgan Stanley. He faced extended questioning at last week’s nomination hearing about interest-rate policy and the Fed’s approach to inflation and economic growth.

The nomination and hearing occurred as tensions between President Donald Trump and Chair Jerome Powell have increased. Trump has publicly discussed removing Powell and sought board changes last year. Powell’s term as chair ends next month; he would remain on the Federal Reserve’s Board of Governors if his chairmanship concludes.

A Justice Department criminal inquiry into Powell over statements about a renovation of the Fed’s headquarters was dropped last week. Senator Thom Tillis, R-N.C., had withheld support pending the investigation’s outcome but voted to advance Warsh after prosecutors closed the probe and said he is confident it has ended.

During his hearing, Warsh testified that digital assets are already integrated into financial services. Financial disclosures released as part of the nomination process show Warsh holds a range of cryptocurrency-related investments, including positions tied to decentralized derivatives exchange dYdX, protocol Lighter, venture firm Polychain, NFT company Dapper Labs, and tokens such as Solana and Optimism.

With the committee vote complete, the full Senate will schedule a final confirmation vote. A simple majority will be required to confirm Warsh as Federal Reserve chair.