*Fed Chair Transition Gains Momentum as Senate Banking Committee Advances Kevin Warsh's Nomination*
The US Federal Reserve is on the cusp of a significant leadership change, with Kevin Warsh, a former Fed governor, nominated by President Donald Trump to succeed Jerome Powell as chair. The Senate Banking Committee has agreed to move forward with confirmation hearings for Warsh, despite opposition from Senator Thom Tillis, who has vowed to block the nomination until a Justice Department investigation into Powell is resolved .
Powell's term as Fed chair expires in May 2026, and his potential departure has sparked speculation about the future direction of monetary policy. Warsh, who served as a Fed governor from 2006 to 2011, has expressed support for Trump's economic policies and has argued that the Fed should allow the economy to continue growing without excessive intervention .
The nomination process is expected to be contentious, with Democratic senators seeking to delay proceedings until the investigation into Powell is closed. Meanwhile, Treasury Secretary Scott Bessent has emphasized the need for continuity at the Fed, urging the Senate to move forward with Warsh's confirmation .
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