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The US Senate is set to vote on Kevin Warsh’s Federal Reserve chair nomination at 5:30 p.m. ET on Monday, May 11.
The Senate will hold two roll call votes that evening, according to the Senate Daily Press schedule. The first is on S.Res.690, an en bloc nominations resolution. The second is a motion to invoke cloture on Warsh’s nomination as a Member of the Board of Governors, Executive Calendar #728.
Majority Leader John Thune filed cloture on Warsh on April 30. He also filed cloture on Executive Calendar #727, Warsh’s separate nomination to serve as Chairman of the Board for a four-year term.
The most partisan Fed chair vote in committee history
The Senate Banking Committee advanced Warsh’s nomination 13-11 on April 29 along party lines. All 13 Republicans voted in favor. All 11 Democrats voted against.
Senator Elizabeth Warren’s office called it the first party-line committee vote on a Fed chair nominee in the panel’s history.
The full Senate vote may also break with tradition. Every prior Senate confirmation of a Fed chair nominee has included some bipartisan support.
Senator John Fetterman (D-PA) said he plans to vote in favor, potentially making him the sole bipartisan crossover.
Warsh can be confirmed by a simple majority. Republicans hold a 53-seat majority.
Powell stays on the Board through 2028
Powell intends to remain on the Federal Reserve Board of Governors after stepping down as chair. His board term runs until January 2028.
Powell has said he would not act as a “shadow chair” or publicly oppose his successor.
The continuity in itself is rather odd, as central bank chairs normally resign from the bank when their tenure comes to an end.
Powell’s decision means the Board could include two former chairs once Warsh is sworn in.
The shift follows the Justice Department’s conclusion of an investigation into Powell in relation to the remodeling of the Fed’s headquarters.
Senator Thom Tillis had said he would block Warsh’s nomination while the investigation remained open. He later backed the nomination after the probe was closed.
A new ethics rule on prediction markets
The Senate also adopted a new rule last week banning senators, staff, and officers from trading on prediction markets, according to a Cryptopolitan report.
The measure was adopted by unanimous consent after an amendment from Senator Alex Padilla.
The rule adds another ethics backdrop to Warsh’s confirmation. Reuters reported in April that Warsh’s financial disclosures included holdings tied to SpaceX, Polymarket, crypto and AI. Warsh has pledged to divest assets if confirmed.
He will be the first nominee for the Fed Chair position to disclose cryptocurrency investments.
If he is confirmed by May 15, he will assume office before the Federal Reserve meeting on June 16-17.
According to Warsh, the productivity gains from AI can help relieve inflationary pressures.
This belief has led to speculation that he is likely to consider cuts to interest rates despite several Federal Reserve members’ warnings that the influence of AI on inflation is unclear.
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