US Senate panel votes to advance Trump's Fed chair nominee

WASHINGTON: A US Senate panel voted Wednesday to advance the nomination of Kevin Warsh, President Donald Trump’s pick for Federal Reserve chair, amid concerns over mounting political pressure on the central bank.

The 13-11 decision by the Senate Banking Committee brings Warsh a step closer to a vote by the full Senate, with current Fed Chair Jerome Powell’s term at the helm to expire soon on May 15.

Lawmakers voted along party lines on Wednesday morning, with Republicans giving the green light to Warsh while Democrats pushed back.

The top Democrat on the banking committee, Elizabeth Warren, charged that a vote to advance Warsh’s nomination would bring the president closer to his “attempt to seize control of the Fed.”

READ MORE: Fed set to hold rates steady again

“Trump has not been subtle about his takeover,” Warren added.

She pointed to his attempt to oust Fed governor Lisa Cook over mortgage fraud allegations, alongside the Trump administration’s probe into the Fed and Powell over renovation cost overruns at the central bank’s headquarters.

Republican Senator Thom Tillis on the banking panel had initially vowed to block Warsh’s nomination if the investigation were not concluded.

With the Justice Department last Friday saying it was dropping the probe, Tillis relented and backed Warsh during the vote.

All eyes will now turn to a press conference that Powell is due to hold a few hours later, after the independent central bank announces its latest interest rate decision.