President Donald Trump’s pick to lead the Federal Reserve cleared a key vote Wednesday, paving the way for a full confirmation vote in the GOP-led Senate.
All Republicans voted in favor of approving Warsh to succeed current Fed Chair Jerome Powell.
"We need a Federal Reserve that is responsive to the needs of the American families, more than the political will, of whoever is in the White House," Sen. Tim Scott (R-S.C.), Chair of the Senate Banking Committee, said during Wednesday's vote. "I believe the Federal Reserve will be more consistent with those needs than we've e seen in the last several years."
At a hearing last week, Warsh told senators on the panel that he never promised Trump that he would cut interest rates and pledged to be “an independent actor” if confirmed as chair.
Prior to that hearing, Trump said during a CNBC interview that he would be disappointed if Warsh did not immediately cut rates.
"This is not just about interest rates," Sen. Raphael Warnock (D-Ga.) said during Wednesday's hearing to advance Warsh's nomination. "President Trump's actions, including vicious attacks on current chair Jerome Powell, as well as his illegal attempt to fire governor Lisa Cook, should give all of us pause and deep concern."
The vote comes after Sen. Thom Tillis (R-N.C.) said he would allow Senate confirmation to go forward after the Department of Justice dropped its probe into Powell. Tillis had viewed the DOJ's investigation as a threat to the central bank's political independence. Powell revealed earlier this year that the Justice Department had subpoenaed the Fed over Powell’s Senate testimony about the central bank’s $2.5 billion building renovation project.
Warsh became the youngest governor on the Fed’s seven-member board at 35 years old. He previously served as an investment banker and an economic aide in George W. Bush’s administration.
In 2017, Warsh was a runner-up to lead the central bank, but Trump instead chose Powell to serve in the role. Trump has claimed that he was given bad advice about Powell.
A vote will be taken up by the full Senate next month, where he needs a majority approval vote to be confirmed as Federal Reserve chair.