Warsh Files Senate Paperwork as Powell Deadline Nears

Kevin Warsh filed the Senate financial-disclosure forms on Monday that the Senate requires to advance his nomination for Federal Reserve chair, removing a procedural hold that had prevented a confirmation hearing. The filing clears one barrier to a hearing that had been expected this week, but the timeline for final approval remains uncertain as Jerome Powell’s term ends on May 15.

The administration said it expects Warsh to be in place by May 15. Senator Thom Tillis of North Carolina has indicated he will withhold support until a separate federal criminal case tied to Powell is resolved. The U.S. attorney in the District of Columbia has indicated the prosecution will continue.

Federal Reserve Governor Stephen Miran, a Trump appointee, spoke in Washington while the nomination process proceeded. He said the energy shock from the Iran war “has not raised longer-run inflation expectations,” adding, “There’s thus far no evidence that inflation expectations are higher.” Miran said the labor market has been gradually cooling for about three years and that energy-driven price jumps often occur quickly and then fade. He forecast that “a year from now, I see inflation running pretty close to our target.”

Miran’s comments diverge from the minutes of the Federal Open Market Committee’s March 17-18 meeting, which recorded several officials concerned the Iran conflict could push inflation higher and require consideration of additional rate increases. At that meeting, the committee left the federal funds rate unchanged at 3.5% to 3.75%.

At the March meeting Miran advocated a quarter-point cut, a position that differed from most other officials. Since his appointment last September, he has pushed for faster reductions in the policy rate than other governors.

Miran also addressed a proposal to allow stablecoin issuers to pay interest to users. He said he did not view the plan as a major risk: “I don’t view it as such a big deal, to be honest.” He noted some funds could move from banks into dollar-pegged crypto products but did not expect the scale to meaningfully affect the wider economy.

Television commentator Jim Cramer commented on how policy under a Warsh-led Fed might affect markets, arguing that if rates do not start rising again the next Fed chair probably would not raise short-term rates and could move to cut them. Cramer said oil still contributes to inflation but that the U.S. is less exposed because vehicles are more fuel efficient and domestic natural gas is relatively cheap, calling natural gas “our secret weapon.” He also suggested recent price increases tied to tariffs and energy may be treated by the Fed as temporary and said interest-rate moves tend to change how investors value future earnings.

Warsh’s filing allows the Senate Banking Committee to schedule a confirmation hearing. The path to final confirmation will depend on the committee’s schedule, objections from senators and any developments in the related federal case.