The Senate Banking Committee cleared Kevin Warsh 13-11 to be the next Fed chair four days after DOJ dropped a probe into Powell. The full Senate is expected to confirm Warsh before Powell's May 15 term expires.
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Nominee for Federal Reserve Chair; former Fed Governor (2006–2011)
Testified before Senate Banking Committee April 21; deflected questions about the 2020 election and Fed independence; committed to reducing forward guidance, shrinking the Fed's balance sheet, and narrowing the Fed's mandate away from climate concerns
Federal Reserve Chair; term expires May 15, 2026
His departure is the occasion for the nomination; was subpoenaed by DOJ in January 2026 over testimony about the Fed's $2.5B building renovation; agreed to stay on past May 15 until Warsh is confirmed to prevent a leadership vacuum
U.S. Senator (R-SC); Chairman, Senate Banking Committee
Chaired the April 29 committee vote and the April 21 confirmation hearing; framed Warsh as restoring the Fed's economic stewardship mission; scheduled the full Senate floor vote for the week of May 11
U.S. Senator (R-NC); member, Senate Banking Committee
Single-handedly blocked the committee vote for nearly two months by threatening to join Democrats; reversed course after Jeanine Pirro dropped the investigation April 25; his switch enabled the 13-11 committee vote
U.S. Senator (D-MA); Ranking Member, Senate Banking Committee
Led unified Democratic opposition in both the hearing and the vote; introduced the 'sock puppet' framing that defined the Democratic critique; highlighted Warsh's refusal to confirm Trump lost the 2020 election as disqualifying
U.S. Attorney for the District of Columbia
Dropped the criminal investigation into Powell on April 24 — the single action that unblocked Tillis's hold and made the committee vote possible; retained the option to reopen the probe, which Warren cited as evidence the threat to Fed independence remained
President of the United States
Nominated Warsh and formally submitted the nomination to the Senate March 4; publicly demanded rate cuts from Powell throughout his term; said he would be 'disappointed' if Warsh did not immediately cut rates after confirmation
Federal Reserve Governor; Trump appointee (confirmed September 2025)
His seat is the one Warsh would fill as Fed chair; as a Trump-appointed governor, Miran has advocated internally for the rate cuts Trump demands, previewing the policy direction Warsh is expected to pursue
U.S. Senate Majority Leader (R-SD)
Scheduled the full Senate confirmation vote for the week of May 11, giving Warsh time to be confirmed before Powell's term ends May 15 and potentially take the chair at the June 16-17 Fed meeting
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The Senate Banking Committee voted 13-11 along party lines to advance Warsh.
The April 29 committee vote was 13 Republicans yes, 11 Democrats no. No member crossed party lines.
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Sen. Tillis placed a hold on the committee vote until the DOJ dropped the Powell probe.
Tillis publicly stated he would not allow the committee to proceed until the DOJ investigation into Powell's renovation spending was resolved. He released the hold four days after the probe was dropped April 25.
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DOJ dropped the Powell probe on April 25 without charges.
DOJ prosecutors under U.S. Attorney Sirois closed the investigation into Powell's $2.5 million headquarters renovation on April 25 without filing charges or issuing any findings.
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Sen. Warren called Warsh 'Trump's sock puppet.'
Warren used that phrase during the Senate Banking Committee hearing on Warsh's nomination, arguing his confirmation would compromise the Fed's independence from presidential political pressure.
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The Fed's current benchmark rate is 3.5–3.75 percent.
The Federal Open Market Committee held rates at 3.5–3.75 percent at its most recent meeting. The Fed has held rates steady since late 2025 while monitoring inflation and employment data.
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Powell's term as Fed chair expires May 15, 2026.
Powell was reconfirmed for a second four-year term in 2022. His term as chair expires May 15, 2026. He could remain on the Board of Governors as a regular governor after that date, but he would no longer be chair.
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The Fed chair can be removed by the president only 'for cause.'
The Federal Reserve Act protects governors, including the chair, from presidential removal except for cause — meaning incompetence or malfeasance, not policy disagreement. This legal protection is the foundation of Fed independence, though its enforcement has never been definitively tested in court.
Contact your senator before the full Senate confirmation vote
Read the Federal Reserve's explanation of its independence
Track current interest rates and Fed policy
Read Kevin Warsh's past Fed speeches and writings