🪑 BREAKING: WARSH CLEARS SENATE HURDLE FED REGIME CHANGE NOW ONE VOTE AWAY
The gavel dropped. 13-11. Party lines. Kevin Warsh just cleared the Senate Banking Committee and the full Senate confirmation is now a formality. The Powell era ends. A new Federal Reserve begins.
The vote is done. The path is set.
The Banking Committee advanced Trump's handpicked successor on a straight party-line vote. Every Republican yes, every Democrat no. North Carolina Senator Thom Tillis, the last GOP holdout, fell in line after the DOJ dropped its criminal probe into Powell. The obstacle vanished.
The full Senate timeline is already locked.
Republican leadership intends to move immediately. Confirmation vote lands the week of May 11 positioning Warsh to be sworn in exactly on May 15 when Powell's term expires. There is no delay. There is no second-guessing. This train has left the station.
Warsh promised "regime change." Democrats called it a takeover.
His confirmation hearing delivered the quote that will define his chairmanship: "regime change" to make the Fed more answerable on non-monetary policy matters. Elizabeth Warren fired back calling the nomination an illegal attempt to seize control of the central bank and "artificially juice the economy". The battle over Fed independence is no longer theoretical.
The inflation backdrop is hostile.
As the committee voted, Powell was chairing his final FOMC meeting. Rates held at 3.50%-3.75%. Inflation stuck at 3.3%. Oil surging on Iran conflict. Warsh inherits a central bank that can't cut rates even if Trump demands it.
The "Two Popes" question is unresolved.
Will Powell remain on the Fed Board through 2028? He has the legal right. Trump has threatened to fire him if he stays. That constitutional collision course hasn't been priced. A Board split between outgoing and incoming chairs creates a governance crisis nobody's modeled.
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