Warsh’s Fed nomination clears first in series of senate votes

KEVIN Warsh’s nomination to the Federal Reserve Board of Governors on Monday cleared the first in a series of Senate votes planned this week to install him as chair of the US central bank.

The Senate voted 49-44 on Monday evening to advance Warsh through a procedural obstacle, setting up a vote on Tuesday to confirm him to the Fed board. A separate Senate vote confirming Warsh to succeed Jerome Powell as chairman of the board is expected later in the week.

Two Democrats, John Fetterman of Pennsylvania and Chris Coons of Delaware, voted for Warsh.

Warsh’s confirmation has been all but guaranteed since Senator Thom Tillis, a North Carolina Republican, lifted his blockade on confirming Fed nominations. Tillis acted after the Department of Justice announced it had ended a criminal inquiry of Powell related to cost overruns in the Federal Reserve’s building renovations. 

Democrats have opposed Warsh, arguing that he will not maintain the independence of the central bank on monetary policy given that President Donald Trump has made clear he expects Warsh to cut interest rates. 

Top Banking Democrat Elizabeth Warren has labeled Warsh a “sock puppet” for Trump and criticised him for refusing to say that Joe Biden won the 2020 election during his confirmation hearing.

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Warsh has repeatedly pledged to act independently if he is confirmed to the post. BLOOMBERG