Trump Fed pick Kevin Warsh clears key Senate hurdle, teeing up final vote

The Senate Banking Committee on Wednesday voted to advance Kevin Warsh 's nomination to lead the Federal Reserve , teeing up President Donald Trump 's pick for a final confirmation vote in the Republican-controlled Senate. The vote fell along party lines, with all 13 Republican members voting in favor of the nominee and all 11 Democrats voting against him. Sen. Elizabeth Warren, D-Mass., the Banking panel's ranking member, slammed Warsh before the vote, warning that his confirmation would erode the central bank's independence from the executive branch. "The Trump economy is in real trouble. Inflation is up, job creation is down. The stink of stagflation is in the air, and President Trump is getting desperate," Warren said. "A vote today by this committee to advance Mr. Warsh will bring the president one step closer to completing his illegal attempt to seize control of the Fed and to artificially juice the economy," she said. Warsh cleared the hurdle, as expected, hours before the Fed was set to deliver its latest decision on interest rates – possibly for the last time under the current chair, Jerome Powell . The central bank is likely to maintain its wait-and-see strategy, as sticky inflation , a seemingly stable labor market and Iran-war-related price shocks keep the prospect of further rate cuts at arm's length. …