The US Senate Banking Committee on Wednesday approved Kevin Warsh, President Donald Trump’s nominee to succeed current Federal Reserve Chair Jerome Powell, whose term ends on May 15. The vote was along party lines: 13 Republicans in favor, 11 Democrats against.

Warsh’s nomination now moves to the full Senate for a confirmation vote, which could happen as early as May 11. Warsh previously served on the Fed Board of Governors from 2006 to 2011.

The nomination faced a hurdle from Republican Senator Thom Tillis of North Carolina, who said he would not support any Trump Fed nominee unless a criminal investigation into Powell was dropped. The Justice Department dropped the probe last week, clearing the way.

Democrats, including Senator Elizabeth Warren, voiced concerns that Warsh would be a “sock puppet” for Trump, who has long pushed for lower interest rates. In a December Truth Social post, Trump claimed he would only appoint someone who agrees with him.

Experts are watching Powell’s next move. Trump threatened to fire Powell if he does not step down entirely on May 15. Powell’s term as a Fed governor runs through 2028, but Trump allegedly wants him out completely.

Markets reacted mixed: Nasdaq rose 0.1%, S&P 500 edged up 0.04%, while the Dow Jones fell 0.4%.

Source: www.aljazeera.com