Fed chair pick Kevin Warsh wins US Senate Committee vote, clearing key hurdle

The news: Kevin Warsh, US President Donald Trump’s preferred nominee to lead the Federal Reserve, won the support of the Senate Banking Committee on Wednesday, putting him on track for a final confirmation vote by the Republican-controlled Senate.

The context: The 13-11 vote which fell along party lines has been delayed by Republican Senator Thom Tillis until last week, when the Department of Justice dropped its probe into Fed chair Jerome Powell over the Fed’s building renovation costs.

Tillis had vowed to block Warsh’s nomination until the criminal probe into Powell was dropped.

The decision was reached just hours before the Fed is due to deliver its latest interest rate decision, which may be the last time it does so under the current chair Powell, whose term is due to end on 15 May.