Kevin Warsh, U.S. President Donald Trump’s nominee to chair the Federal Reserve, testifies during the Senate Banking, Housing and Urban Affairs Committee’s confirmation hearing at the Dirksen Senate Office Building on April 21, 2026 in Washington, DC (Photo by Andrew Harnik/Getty Images)
WASHINGTON – President Donald Trump’s decision to lead the Federal Reserve moved a step closer to that position Wednesday after Republican U.S. Sen. Thom Tillis of North Carolina cast the tie-breaking vote to advance Kevin Warsh’s Senate nomination.
Lawmakers on the Senate Banking, Housing and Urban Affairs Committee voted 13-11 along party lines to move Warsh to the next step.
The potential turnover at the top of the Fed, which sets monetary policy, comes as Americans face higher costs in their wallets rising prices at the pump as the conflict between the US and Iran disrupts global energy supplies.
Tillis had withheld his support until the Trump administration announced it on Friday fall what the senator called a “phony” investigation into current Fed Chair Jerome Powell.
“It is no secret that Mr. Warsh’s nomination was delayed because of my concerns about the investigation. I would like to thank the Justice Department for the assurances it gave me,” Tillis, R-N.C., said after the panel’s brief morning meeting, which lasted just under 15 minutes.
“The fact is that this was based on two minutes of testimony. It was not criminal,” Tillis said of the DOJ probe in Powell’s testimony before Congress in June 2025 about a major $2.5 billion renovation of the Fed’s headquarters in Washington, DC
The committee vote comes after Trump’s sustained verbal attacks on Powell over several months, including numerous public threats to fire the Fed chief if he does not agree to a rate cut. `
A federal judge last month blocked The government’s subpoenas investigating the Fed and Powell were cited “a wealth of evidence” showing that Trump used the investigation to force Powell to act.
The Fed was scheduled to meet Wednesday afternoon to announce its latest decision on interest rates, possibly the last under Powell, whose term ends May 15.
Inflation, affordability
The committee’s top Democrat, Sen. Elizabeth Warren of Massachusetts, said the vote brought Trump “one step closer to completing his illegal attempt to seize control of the Fed and artificially stimulate the economy.”
Inflation and affordability are emerging as key issues ahead of the 2026 midterm elections that will determine control of Congress.
Sen. Raphael Warnock, D-Ga., said his constituents in Georgia and beyond “deserve to know that the Fed is on their side in maximizing their chances of keeping a good-paying job and keeping their lives affordable, and not on the side of the president’s poll numbers or his policy concerns as we approach the midterm elections.”
“The independence of the Fed is not theoretical. It matters to the everyday lives of working families,” Warnock said.
According to a report by Reuters/Ipsos Opinion poll According to a poll conducted April 24-27, 61% of Americans think the U.S. economy is on the wrong track.
According to Ipsos, when asked about the costs and benefits of the war in Iran, only a quarter of respondents said they agreed that the US military operation was worth it Opinion poll.
Americans watched fuel prices rise in March and April after Iran cut off the Strait of Hormuz, a narrow sea route that carried a fifth of the world’s oil before the war, in retaliation for US-Israeli attacks.
Gasoline prices are rising
The average price in the United States for a gallon of regular gas reached $4.23 on Wednesday, not only the highest price since U.S. operations began in Iran on February 28, but also the highest price highest since July 2022, according to GasBuddy.
Before the war a gallon normal had not exceeded the $3 mark all the year long.
A return to normal, free-flowing traffic in the strait – which was about 140 ships a day before the war – currently appears out of reach, with Trump announcing last weekend that his negotiators had again withdrawn from attending talks in Islamabad.
Secretary of Defense Pete Hegseth bypassed On Wednesday, Rep. Chrissy Houlahan, D-Pa., asked a question before the House Armed Services Committee about how long the war could last.
However, during the same hearing, Jules Hurst III revealed. from the Pentagon, acting Secretary of War, who is responsible for finances, said that the war had cost the USA $25 billion so far.
While the Fed’s inflation target is 2%, data released in early April showed prices for all items rose 3.3% from a year ago. The enhance was largely due to a 21% enhance in fuel prices from February to March.
The Fed’s so-called “dual mandate” is to maximize employment and stabilize prices. The Fed’s primary way of easing or tightening the economy is by adjusting interest rates. It lowers it when the economy is stagnating and inflation is too low and raises it when inflation becomes too high.
Lisa Cook fires
Warren and Warnock also pointed to Trump’s August ouster of Fed Governor Lisa Cook, who was appointed to the board by former President Joe Biden. The US Supreme Court is examination whether Trump exceeded his authority by firing Cook.
Warnock said he was dissatisfied with Warsh’s written responses to additional questions sent after his April 21 hearing Nomination hearing before the committee.
“I asked, quote, ‘If President Trump or a future president tried to unlawfully fire you without cause, would you leave the Federal Reserve?’ His answer, quote: “I’m not going to answer hypothetical questions like that,” Warnock said.
“Well, this is not a hypothetical question. In fact, the president tried to fire Governor Cook last year, and the president has repeatedly considered firing Chairman Powell because he won’t bow to his interest rate demands – as recently as two weeks ago,” Warnock said, referring to Trump’s comments during an April 15 interview with Fox Business.
Asked Wednesday afternoon whether he thought Warsh would persuade the Fed’s board of governors to cut interest rates, Trump told reporters: “They should, because it’s a good time to cut them. We’re the highest credit-rated country in the world.”
Powell also faced questions Wednesday afternoon.
Asked whether he expected Warsh to remain independent of Trump, Powell said: “He testified to that very clearly in his confirmation hearing, and I take him at his word.”
Jennifer Shutt contributed to this report.
