The Senate Banking Committee voted along party lines Wednesday to approve Kevin Warsh as the next chair of the Federal Reserve, replacing Jerome Powell. The vote was 13 to 11, with all Republicans in favor and Democrats opposed.
Warsh, a former Fed official and a sharp critic of the institution, has called the 2022 inflation spike to 9.1 percent the central bank's biggest policy mistake in four decades. A full Senate vote is expected next month, and Warsh could be confirmed by the time Powell's term ends May 15.
Federal Reserve Chair Jerome Powell is presiding over what is likely his last rate-setting meeting Wednesday. He may indicate whether he will remain on the Fed's board after his term ends, a move that would protect the central bank's independence from the Trump administration.
Senator Elizabeth Warren criticized the vote, calling Warsh a "Trump sock puppet" and warning the move brings the president closer to seizing control of the Fed. Senator Tim Scott defended Warsh as "battle tested" and essential to breaking the "bind of Bidenomics."
The Fed is expected to hold rates steady at about 3.6 percent for the third straight meeting, defying Trump's calls for cuts. Warsh has advocated for rate reductions but faces barriers, including rising inflation driven by higher gas prices amid the Iran war. He will need time to build influence among the Fed's rate-setting committee, where most members prefer to wait before making changes.