White House "Confident Fed's Next Chair Will Take Office in May"

Kevin Warsh, Nominee for US Fed Chair

Kevin Hassett, Chairman of the White House National Economic Council (NEC), stated that he is confident that Kevin Warsh, the nominee for chairman of the Federal Reserve (Fed), the US central bank, will take office from May 15.

In an interview with Fox Business on the 9th (local time), Chairman Hassett responded to the host's question, "Are you confident that nominee Warsh will begin his chairmanship from the 15th of next month?" by saying, "I am very confident that will happen."

He added, "We will find a solution that will satisfy Senator Tillis."

He also said, "(Jerome) Powell has clearly signaled that he will step down once the new chairman is officially confirmed. That is the appropriate thing for him to do."

He expected that the confirmation hearing for nominee Warsh by the Senate Banking Committee would be held next week as scheduled.

When asked, "Do you think Chairman Powell will also leave his position as a board member?" Chairman Hassett replied, "I think so."

It is reported that the Senate Banking Committee plans to hold a confirmation hearing for Warsh's nomination as chairman on the 16th.

The confirmation of a Fed chairman nominee must pass through a Banking Committee hearing and then a full committee vote. The Banking Committee, composed of 24 members, has a structure of 13 Republicans and 11 Democrats. If all Democratic members and at least one Republican member express opposition, the confirmation bill cannot pass the standing committee.

As the U.S. Department of Justice continues its intent to investigate Chairman Powell regarding the issue of excessive spending on the renovation of the Fed building, Senator Thom Tillis (R-North Carolina), a member of the Banking Committee, maintains his stance that he will oppose Warsh's confirmation until the investigation into Chairman Powell is resolved.

Accordingly, there is speculation that the confirmation vote may be delayed, regardless of the hearing being held.