FED'S FUTURE? Kevin Warsh's nomination advanced

Added: 2026-05-07

[00:00:02][music] >> I'm Autria O'Nishon on Capitol Hill. The Federal Reserve waiting to cut interest rates. Central bankers are cautious as the Iran war disrupts supply chains at home and abroad pushing up prices. This comes as President Trump's pick to be the new chair of the Fed gets one step closer to confirmation.

[00:00:24]Federal Reserve chair Jerome Powell taking the podium as head of America's central bank for the final time.

[00:00:29]>> We have so much to learn. There's so much uncertainty about the path ahead.

[00:00:33]The Fed keeping interest rates where they are, a move supported by all but one voting member. Central bankers cautious of rising inflation driven by skyrocketing energy prices as the war with Iran enters a third month. Gas prices hitting a four-year high. $4.23 is Wednesday's national average price for a gallon of regular according to AAA. That's more than 41% higher than before the war. Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook.

[00:01:02]>> Powell also announcing he will stay on as a Fed governor after his term as chair ends. Across Washington, Powell's successor, Kevin Warsh, taking a major step toward confirmation Wednesday. Mr. Chairman, the vote is 13 in favor and 11 opposed.

[00:01:18]The Republican-led Senate Banking Committee voting to advance Warsh's nomination to the full Senate, expected to confirm him as soon as May 11th, four days before Powell's term as chair is up. Senators both for and against Warsh are blunt about the headwinds he'll face as chair, juggling the Fed's dual mandate of price stability and maximum employment.

[00:01:40]>> The Trump economy is in real trouble.

[00:01:42]Inflation is up, job creation is down, the stink of stagflation is in the air.

[00:01:49]Let's not be cute about it.

[00:01:52]Digging out of the hole created by Bidenomics will take time. In his testimony before the committee last month, Warsh pledged to lead the Fed without regard for politics. So, let me be very clear.

[00:02:06]Monetary policy independence is essential. President Trump continues to voice publicly what he thinks the Fed should do with interest rates with Warsh as chair. Is it your expectation that he can persuade the other Fed governors to lower interest rates? Well, I would say yes, they should because it's a good time to lower them.

[00:02:25]We're the most prime country anywhere in the world. On Capitol Hill, I'm Autria O'Nishon reporting.