Trump’s Fed Chair Pick Moves Closer to Confirmation

In a pivotal moment for U.S. monetary policy, the United States Senate Committee on Banking, Housing, and Urban Affairs voted Wednesday to advance Kevin Warsh as the next chair of the Federal Reserve—setting the stage for a leadership shake-up long sought by Donald J. Trump.

The committee approved Warsh in a 13-11 party-line vote, with Republicans unified in support and Democrats opposed. If confirmed by the full Senate next month, Warsh would replace Jerome Powell, whose tenure has been marked by repeated clashes with President Trump over interest rate policy.

Warsh, a former Federal Reserve official, has been outspoken in his criticism of the central bank’s recent performance. He has pointed to the inflation spike to 9.1% in 2022 as the most significant policy failure in decades—an argument that aligns with broader conservative concerns about unchecked monetary expansion and its impact on American households.

Meanwhile, Powell appears poised to take an unusual step as his term nears its May 15 conclusion. On Wednesday, he presided over what could be his final rate-setting meeting as chair of the Federal Reserve and indicated he may remain on the Board of Governors afterward—a rare move that would limit President Trump’s ability to appoint a new member.

That decision drew sharp criticism from Scott Bessent, who questioned Powell’s commitment to institutional norms during an interview with Fox Business host Larry Kudlow.

“It is unusual for soon-to-be-former Fed Chair Jay Powell to stay on at the @federalreserve. For someone who speaks so often of norms, his unilateral decision to stay flies in the face of tradition,” Walsh posted on the X platform along with a video clip of his interview.

“Kevin Warsh will bring about a new day at the Fed, with accountability, management, and sound policymaking in the lead,” he added.

Supporters on Capitol Hill echoed that sentiment. Tim Scott, who chairs the Banking Committee, praised Warsh as “battle tested,” emphasizing the need to reverse the economic strain many Americans have faced in recent years.

“It is incredibly important that we break the bind of Bidenomics on households across this nation,” he added.

The vote came the same day the Federal Reserve opted to hold interest rates steady at 3.6%, once again resisting President Trump’s calls for rate cuts aimed at stimulating economic growth.

The leadership dispute is unfolding alongside a broader legal clash involving the central bank. In March, James Boasberg blocked a Justice Department effort to issue grand jury subpoenas targeting the Federal Reserve Board, citing a lack of evidence of wrongdoing by Powell.

Boasberg, who has previously ruled against the Trump administration, wrote that the subpoenas appeared to be improperly motivated.

“Did prosecutors issue those subpoenas for a proper purpose? The Court finds that they did not. There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will,” he wrote.

The investigation, launched earlier this year by Jeanine Pirro, centered on Powell’s June 2025 testimony before the Senate Banking Committee regarding a long-running renovation project at the Fed’s Washington headquarters. Powell has characterized the probe as an attack on the central bank’s independence.

Pirro pushed back forcefully, announcing plans to appeal the ruling and accusing the court of overreach.

“This process has been arbitrarily undermined by an activist judge,” Pirro said, arguing further that the ruling improperly blocked prosecutors from pursuing the case.

With Warsh’s nomination advancing and tensions escalating between the White House, the Federal Reserve, and the judiciary, the coming weeks could prove निर्णisive—not just for the future of the central bank, but for the broader direction of U.S. economic policy under President Trump’s second term.