The U.S. Senate Banking Committee advanced Kevin Warsh’s nomination for Federal Reserve Chair in a 13-11 vote, sending it to the full Senate before Jerome Powell’s term ends on May 15. The available reports add that Warsh has pledged to shrink the Federal Reserve’s $6.7 trillion balance sheet and overhaul inflation management, while Jerome Powell said the chair nominee would serve as chair of the FOMC, the Fed’s main rate-setting body. Because the Federal Reserve Chair oversees U.S. monetary policy and broader liquidity conditions, the nomination is being closely watched across traditional financial markets and digital asset markets.