Analysis: Kevin Warsh moves one step closer to assuming the role of Federal Reserve Chair, potentially receiving full Senate confirmation before Chairman Powell’s term ends

Odaily reported that Kevin Warsh, nominated by U.S. President Donald Trump as the next Federal Reserve Chair candidate, received support from the Senate Banking Committee in a 13-11 vote. This paves the way for him to obtain full Senate confirmation before Powell's term ends on May 15. The nomination will subsequently proceed to a full Senate vote. Warsh’s nomination had previously been blocked by Republican Senator Tom Tillis until the Department of Justice agreed last week to temporarily suspend its criminal investigation into cost overruns related to the renovation of the Federal Reserve’s Washington headquarters. This vote makes it increasingly likely that a Fed under Warsh’s leadership will see the biggest shake-up at the U.S. central bank in years. While campaigning for Trump’s nomination, Warsh raised the prospect of a “regime change,” promising to shrink the Fed’s $6.7 trillion balance sheet, establish a new inflation management framework, and change the way the central bank communicates with the public. However, he has provided few specifics on how he intends to achieve these goals. (Jin Shi)