Bloomberg’s Michael McKee Previews Key Fed Week: Powell’s Final Press Conference, Warsh Nomination Advances Ahead of Senate Vote

Senator Thom Tillis (R-North Carolina) said he would support the nomination of Kevin Warsh to become the next Chair of the Federal Reserve, clearing a key procedural hurdle ahead of the Senate Banking Committee’s confirmation vote.

The announcement came on Sunday morning, hours before the Senate Banking Committee was scheduled to move forward with Warsh’s nomination following the dismissal of a Department of Justice investigation into his conduct.

Warsh, a former Federal Reserve Governor, has spent years criticizing the central bank for doing too much and has recently suggested it may need to do the opposite, setting up a potential shift in monetary policy direction should he be confirmed.

His confirmation hearing before the Senate Banking Committee is expected to be the first real test of how President Donald Trump’s nominee will balance the administration’s push for lower borrowing costs with the Federal Reserve’s traditional independence in setting monetary policy.

Warsh has stated in prepared remarks that he does not believe the operational independence of monetary policy is threatened when elected officials express views on interest rates, and that central bankers should listen to a diversity of views while forming their own opinions on policy.

The development comes as Jerome Powell prepares to deliver his final press conference as Federal Reserve Chair this Wednesday, ahead of his term ending next month, marking a pivotal moment in the central bank’s leadership transition.

Bloomberg’s Michael McKee is scheduled to break down the implications of the week ahead for the Fed, including the confirmation process and Powell’s final public remarks as chair.