MNI BRIEF: Senate Panel Advances Warsh To Be Fed Chair

The Senate Banking Committee on Wednesday approved Kevin Warsh’s nomination to become the next Federal Reserve chair, a crucial step toward confirmation. 

The panel voted 13 to 11 to advance Warsh to the full Senate, where Republicans hold a majority and his confirmation is all but assured. The vote in the Senate panel was split along party lines. 

At his confirmation hearing last week, Warsh pledged independence from the White House, policy regime change at the central bank, and a lighter communications footprint. (See: MNI INTERVIEW: Fed Winning Fight Over Independence-Richardson) 

Warsh has suggested he might hold fewer news conferences after regularly scheduled policy meetings and scale back the Fed’s practice of projecting interest rates every quarter, arguing that such forward guidance can leave policymakers anchored to outdated forecasts. (See: MNI POLICY: Warsh Could Reshape Fed On Rates, Communication)