Senate Banking Committee Advances Warsh for Fed Chair in First Fully Partisan Vote

The Senate Banking Committee voted 13-11 on April 29 to advance Kevin Warsh's nomination as Federal Reserve chairman — the first fully partisan committee vote on a Fed chair nominee in the panel's history — sending his confirmation to the full Senate, which is expected to vote before current chairman Jerome Powell's term expires May 15.

At his April 21 confirmation hearing, Warsh told senators he would not be "Trump's sock puppet" at the central bank while calling for a fundamental overhaul of how the Fed sets policy. "The fatal policy error going back four or five years is still a legacy that we are dealing with," he said, framing his approach as requiring "a regime change in the conduct of policy" and a "different new inflation framework."

Warsh declined to commit to maintaining the Fed's current practice of holding a press conference after every Federal Open Market Committee meeting.

Undisclosed holdings and ethics timeline

The hearing intensified scrutiny over Warsh's financial disclosures. His April 10 filing with the Office of Government Ethics shows he holds more than $100 million in investments whose underlying assets he has not disclosed, citing pre-existing confidentiality agreements with fund managers. OGE withheld full certification of his compliance with the Ethics in Government Act, noting the report is in compliance for all lines except dozens of entries covering those holdings. OGE certification will require divestiture.

The affected holdings include Juggernaut Fund LP, which Warsh committed to divest before assuming duties as Fed chair; THSDFS LLC Series 65, also committed to divest before assuming duties; and 58 additional THSDFS LLC series, DCM Investments 9 LLC, and three Bessemer Venture Associates funds, committed to divest within 90 days of confirmation.

Minority staff of the Banking Committee identified a specific conflict risk: Juggernaut Fund LP appears to have held a financial interest in the parent company of Berkshire Hills Bancorp as recently as December 2024, and in the parent company of Investar Bank as recently as August 2025 — both institutions that fall under Federal Reserve regulatory oversight. Under the Federal Reserve Act, board members are prohibited from holding stock in any bank, banking institution, or trust company.

Sen. Elizabeth Warren, the committee's ranking member, asked Warsh directly whether his Juggernaut Fund or THSDFS LLC investments included interests in Trump-affiliated companies, Chinese-controlled entities, or financing vehicles associated with Jeffrey Epstein. Warsh did not answer directly, stating that "those assets will be sold if I am confirmed before I take office and sign the oath of office."

Warsh's ethics agreement also covers a consulting arrangement with undisclosed terms. The minority staff report noted that Warsh has not disclosed who would redeem his stakes in what may be illiquid private funds, or at what price — raising questions about who profits from his divestiture and what interests those buyers may hold in Fed decisions.

Confirmation path

All 13 Republican members voted to advance the nomination; all 11 Democratic members voted against. On April 30, a unanimous consent agreement waived the mandatory quorum requirement under Rule XXII, a procedural step that clears the path for a final floor vote. Republicans hold 53 Senate seats. Sen. John Fetterman of Pennsylvania has indicated he plans to vote in favor, suggesting Warsh is likely to be confirmed with at least some bipartisan support.

Powell's term as Fed chair expires May 15.

Background

Warsh, 56, previously served as a Federal Reserve governor from 2006 to 2011. He was nominated by President Trump on January 30, 2026, to succeed Powell. Trump simultaneously nominated Warsh for both the chairmanship and a 14-year board member term.

The nomination proceeded over objections from all 11 committee Democrats, who had written twice to Chairman Tim Scott urging a delay until the Justice Department closed its criminal investigations of Powell and Governor Lisa Cook — probes Democrats characterized as pretextual pressure on the Fed's independence. The DOJ investigation into Powell was dropped before the committee vote.