The Senate Banking Committee will vote Wednesday on President Donald Trump’s pick to lead the Federal Reserve, Kevin Warsh, in a key test of how much influence the White House can exert over the central bank.
If he clears committee, Warsh’s nomination heads to the Senate floor, where Republicans’ narrow majority leaves little room for defections if they want to place Trump’s pick at the helm of the Fed for the next four years.
The Federal Reserve operates largely out of public view, but its influence touches nearly every corner of the U.S. economy — shaping borrowing costs, job growth and inflation, making the outcome of his nomination a key moment for how that power could be steered.
FROM MORTGAGES TO CAR LOANS: HOW AFFORDABILITY RISES AND FALLS WITH THE FED
Warsh’s potential ascent to lead the world’s most powerful central bank comes at a particularly volatile moment. The Federal Reserve is grappling with persisting inflation, economic ripples of the war in Iran and a looming Supreme Court decision over Fed Governor Lisa Cook — all while political pressure builds ahead of the midterm elections in November.
The path to a Senate Banking Committee vote on Warsh’s nomination was finally able to move forward after the Justice Department closed its probe into Federal Reserve Chair Jerome Powell after months of scrutiny.
Sen. Thom Tillis, R-N.C., withheld support for moving forward with Warsh’s nomination until the DOJ probe was resolved. Trump pushed back on closing the investigation, further raising questions about governance and oversight at the central bank.
The probe was related to potential mismanagement of funds during renovations at the Federal Reserve’s headquarters in Washington, D.C. and it unfolded despite Powell’s term as chair ending next month.
Powell, breaking from his typically measured approach, called the Justice Department investigation “unprecedented” and framed it as part of Trump’s pressure campaign on the Fed to cut interest rates and his fiery rhetoric against the chairman for his refusal to cave to that pressure.
FEDERAL RESERVE CHAIR POWELL UNDER CRIMINAL INVESTIGATION OVER HQ RENOVATION
In March, Powell told reporters he has “no intention of leaving” the central bank until the DOJ investigation is “fully resolved with transparency and finality.”
His term as Fed chair is set to end May 15, though he is eligible to remain on the Federal Reserve Board of Governors for an additional two-year term. The Federal Reserve Board of Governors, known as the Fed board, consists of seven members nominated by the president and confirmed by the Senate, who help set interest rate policy and oversee the central bank’s operations.
THE ONE LINE IN WARSH’S TESTIMONY SIGNALING A BREAK FROM THE FED’S STATUS QUO
Warsh has already signaled a clear break from the central bank’s current approach regardless of whether Powell remains at the Federal Reserve beyond his chairmanship.
In testimony before lawmakers on April 21, Warsh pledged to keep monetary policy “strictly independent” and said he intended to keep the central bank “in its lane,” warning that the Fed has become too involved in social policy.
He has also taken aim at what he sees as a complacent central bank, warning that large institutions are prone to inertia and that clinging to the “status quo” in a fast-moving economy is not just outdated, but dangerous.
At the same time, he has signaled openness to closer coordination with elected leaders and work with the White House and Congress on nonmonetary matters — an approach that could reshape how the Fed operates in Washington.
How that balance is struck could define not only Warsh’s tenure, but the future direction of the institution that plays a major role in the financial lives of millions of Americans.
Warsh faces first big test on Capitol Hill as Trump’s Fed vision comes into focus 2026 IUSTITIA.BG – Investigations 2009-2025 2026-04-29 09:17:20 Latest news World news Country news Most important news latest news most important latest of the day Justice Petar Nizamov Feathers Petar Nizamov- Feathers Justice bg iustitia.bg iustitia iusticia usticia investigation Burgas Bulgaria news news of the last hour news of the day news of today Bulgaria news The news from Bulgaria blitz news top news most important most commented latest news Boyko Borisov news weather coronavirus news news weather facebook youtube facebook instagram news today news of the last minutes news today today news news bg news leading news hot news bg news site for news all news news bg news of the last hour latest latest news bg news of today news today news today news of the last hour latest news today news bg news news 24 hours news vesti bg novini news world bird bg bivol bg bivol trud bg novini latest news today novinite bg news hello bulgaria political party coat of arms delyan peevski scandalous Bulgarian National Television Free Europe Television scandal exclusive live tv live right now tv tv online tv program bg live now tv news online tv online live court Burgas court Burgas district court Burgas court Burgas district court Burgas district court Burgas appellate court Burgas prosecutor Burgas prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Prosecutor General Ivan Geshev Prosecutor Geshev Tsatsarov Ministry of Internal Affairs Burgas ODMR Burgas ODPR Burgas police Burgas district police Burgas prosecutor Tsatsarov SGS cases Varna court chairman of the SGS court decisions on civil cases decisions on cases Plovdiv court decision of the court decisions cases Varna court criminal cases district district court decisions work in the court SGS chairman of the SGS judges Sofia court post judges Plovdiv court Plovdiv judges Plovdiv Supreme Court Inspectorate Supreme Court Supreme Judicial Council lawyer lawyer criminal cases lawyer civil cases lawyer marriage cases lawyer administrative criminal law criminal process civil law civil process administrative law constitutional law
