President Donald Trump's pick to lead the Federal Reserve is on track to being confirmed by the Senate, according to White House economic advisor Kevin Hassett.
Former Federal Reserve Board of Governors member Kevin Warsh has "enormous" bipartisan support in the upper chamber and should be confirmed by May, Hassett told Fox Business Network on Thursday. "I'm highly confident that that will happen," Hassett said.
Warsh's nomination was first announced on Jan. 30.
Current Federal Reserve Chair Jerome Powell had initially indicated he would leave the central bank once a new chair was selected, according to Hassett. But Powell last month said he would not leave his post at least until a criminal investigation of him led by U.S. Attorney Jeanine Pirro is complete. Powell also said at the time that he hadn't decided whether to remain as governor on the board until that term ends in 2028.
His term as Federal Reserve chair ends in May.
"He's really signaled that once there's a confirmed head chair, that he'll step aside, and that's the appropriate thing for him to do," Hassett said.
Powell said on Jan. 11 that the Justice Department had subpoenaed the Federal Reserve over his Senate testimony last June about the central bank’s $2.5 billion building renovation project. A U.S. judge last week upheld subpoenas issued as part of the probe, likely setting up an appeal that could further delay Trump's move to install a Federal Reserve chief whom he considers more cooperative.
The Senate Banking Committee is scheduled to consider Warsh's nomination at a hearing next week.
Sen. Thom Tillis (R-N.C.), a member of the committee, said he will oppose confirming Warsh until the criminal investigation is resolved.
Trump's nominee has harshly criticized the Federal Reserve’s policies in recent years, including its low interest rate policies coming out of the pandemic, which he said contributed to the country's largest inflation spike in four decades, in 2021 and 2022.
Warsh needs a majority approval vote in the Senate to be confirmed as Federal Reserve chair.