Wells Fargo will need a formal vote from the Federal Reserve before growth restrictions are lifted

Wells Fargo & Co. will have to receive formal approval in a vote taken by the Federal Reserve Board of Governors before its growth restriction is lifted, Fed Chairman Jerome H. Powell has decided - a move that could cut into the bank's profits.

Powell disclosed his determination in a letter Thursday to Sen. Elizabeth Warren (D-Mass.), who had pushed for a board vote - rather than just a staff endorsement - so Congress and the public could hold the Fed accountable when it decides whether to lift the stiff penalty stemming from the San Francisco