Kevin Warsh moved a step closer to the Fed chairmanship after the Senate Banking Committee voted 13-11 to advance his nomination. Republicans on the panel lifted their hold once federal prosecutors dropped the inquiry into outgoing Chair Jerome Powell. The vote clears the way for a full‑Senate decision before Powell’s term ends on May 15.

Democrats opposed Warsh uniformly, with Senator Elizabeth Warren branding him a “sock puppet” and warning of White House influence. Critics also flagged his personal finances, noting he would become the wealthiest Fed chair in history. Warsh pledged to divest more than $100 million in assets, though Democrats questioned the timing and transparency of those sales.

If confirmed, Warsh—who served as a Fed governor from 2006 to 2011—would inherit a central bank under political pressure to cut rates. Markets will watch the Senate’s final vote for clues on future monetary policy direction, as the timing could affect Treasury yields and dollar‑linked assets immediately.