Kevin Warsh Approved by the US Senate, the Chair of the Fed is Getting Closer

Kevin Warsh has pledged to keep the Fed independent. (Wimimedia Commons - Federal Reserve)

WASHINGTON - The United States Senate confirmed Kevin Warsh as a member of the Federal Reserve Board of Governors or The Fed, the US central bank. This decision brings President Donald Trump's choice candidate closer to the chair of The Fed.

Quoted from Anadolu Agency, Wednesday, May 13, the Senate approved Warsh for a 14-year term with a vote of 51 to 45 on Tuesday.

This confirmation only applies to Warsh's position as a member of the Fed's Board of Governors. A separate vote will still be held for his nomination as chairman of the Board of Governors with a four-year term.

If approved, Warsh would replace Jerome Powell. Powell's term as Fed chairman is scheduled to end this week.

Previously, the Senate Banking Committee approved Warsh's nomination by a 13-11 vote. The approval came after Republican Senator Thom Tillis withdrew his opposition.

Tillis had threatened to hold Warsh's nomination at the committee level. He asked the Justice Department to first end the investigation into Powell regarding the renovation of the Federal Reserve headquarters in Washington, DC, and the alleged swelling of costs.

The Justice Department later closed the investigation. They asked Federal Reserve Inspector General Michael Horowitz to review the matter. After that, Tillis supported Warsh's nomination to run.

Warsh's nomination is of interest to markets as it comes as the Trump administration pushes for lower interest rates, tax cuts, and deregulation. The Fed's policy direction and the independence of the US central bank are now in the spotlight.