March 29 (Reuters) – The Senate Banking Committee is planning to hold its hearing on the nomination of Kevin Warsh as chair of the Federal Reserve as soon as the week of April 13, Punchbowl News reported on Sunday, citing two sources familiar with the planning.
Political resistance has held up Warsh’s nomination in the Senate, with Fed Chair Jerome Powell remaining in place even as President Donald Trump presses for a successor willing to cut interest rates faster.
The uncertainty over the Fed’s leadership has collided with a worsening inflation backdrop, as oil prices have surged following U.S.-backed airstrikes on Iran and as an escalating war in the Middle East disrupts key shipping routes.
Traders now have little expectation for a rate cut this year, as higher energy costs feed into broader inflation and limit the scope for easing monetary policy.
(Reporting by Costas Pitas, additional reporting by Rodrigo Campos; Editing by Sergio Non and Stephen Coates)
