The Senate confirmed Federal Reserve chair nominee Kevin Warsh to the Board of Governors Tuesday, a big step in President Donald Trumpâs attempt to replace Chairman Jerome Powell.
The Senate confirmed Powell in a 51-45 vote, with Democratic Pennsylvania Sen. John Fetterman being the only member of his party to vote in favor of the nomination. The chamber still has to vote separately on whether to replace Powell with Warsh, whose four-year term ends Friday.
The vote to replace Powell was expected to be held later in the week.
Warsh will be taking over the board seat held by Stephen Miran, a Trump appointee, whose term technically ended in January. Miran was allowed to remain on the board until his successor was named.
Powell stated he would remain on the Board of Governors for an unspecified period. Trump has repeatedly threatened to remove Powell from the Board of Governors if he does not step aside, telling Fox Newsâ Maria Bartiromo on April 15 that he will have to âfireâ Powell if he chooses to remain on the board.
The Department of Justice (DOJ) dropped a criminal probe into Powell related to a renovation project for the Federal Reserve building that exceeded the previous $2.5 billion estimates. Republican North Carolina Sen. Thom Tillis vowed to block Warshâs nomination until the Department of Justice (DOJ) dropped eventually ended its investigation into Powell.
During his confirmation hearings, Warsh highlighted the importance of the Federal Reserveâs independence as Democrats raised concerns about him taking orders from Trump, after Trump publicly berated Powell for years for not lowering interest rates as much as he wanted. Warsh stated he would not be Trumpâs âhuman sock puppetâ or take orders from him on interest rates.
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