Powell, Kevin Warsh in focus
CNBC • • business
Key Points:
- The Senate Banking Committee advanced Kevin Warsh's nomination as the next Federal Reserve chair in a party-line 13-11 vote, sending it to the full Senate for consideration; Warsh is President Trump's pick to succeed Jerome Powell, whose term ends in mid-May.
- The Supreme Court has yet to rule on Trump v. Cook, a case challenging the president's attempt to remove Fed governor Lisa Cook, with implications for presidential powers and the Federal Reserve's independence.
- Jerome Powell's future remains uncertain as his term as Fed chair ends, but his governor term runs until 2028; he may stay on to help protect the Fed's independence amid President Trump's pressure on the central bank.
- U.S. attorney Jeanine Pirro dropped a criminal investigation of Powell to facilitate Warsh's confirmation, shifting focus to an inspector general probe of Fed headquarters renovation cost overruns.
- The Federal Open Market Committee is expected to keep interest rates steady at 3.5%-3.75% in April, with Powell's final meeting likely to yield a less definitive policy signal during the post-meeting news conference.
