The Senate Banking Committee voted 13-11 along party lines Wednesday to advance Kevin Warsh’s nomination as the next chair of the Federal Reserve, the first fully partisan committee vote on a Fed chair in the panel’s history, according to Sen. Elizabeth Warren. Hours later, current Fed Chair Jerome Powell will deliver what is very likely to be his last interest-rate decision before his term expires May 15, holding rates steady at around 3.6%.
To Claudia Sahm, the former Federal Reserve economist known for founding the eponymous recession indicator, the vote is just the start of the idiosyncrasy. “This is not normal is going to be a theme,” Sahm told Fortune. “Frankly, it could be a theme for Warsh’s tenure as Fed chair.”
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