The Senate confirmed Kevin Warsh as the next chair of the Federal Reserve on Wednesday in a 54-45 vote, the closest confirmation vote for a Fed chair in the modern era. Warsh, 56, will take over leadership of the central bank from Jerome Powell when Powell’s term as chair ends on Friday.
The vote fell mostly along party lines. Only one Democrat, Senator John Fetterman of Pennsylvania, crossed over to support Warsh. President Donald Trump has openly pushed for lower interest rates and has repeatedly criticized Powell for keeping policy too tight. Trump expects Warsh to shift the Fed toward easier monetary policy.
The confirmation ends a long search process that began in the summer of 2025. Warsh was one of nearly a dozen candidates considered for the job, which also included current Fed Governors Christopher Waller and Michelle Bowman.
White House spokesman Kush Desai welcomed the news, saying the confirmation was “a welcome step towards finally restoring accountability, competence, and confidence in Fed decision-making.”
Economic Challenges Ahead
Warsh steps into the role at a difficult time. Recent reports show inflation remains well above the Fed’s 2% target, and pipeline price pressures are rising at the fastest pace in more than three years. Financial markets have pulled back expectations for interest rate cuts and are even pricing in a small chance of a rate increase later this year.
Warsh has a long history with the Federal Reserve. He served as a governor from 2006 to 2011, during the lead-up to and recovery from the global financial crisis. After leaving the Fed, he became a vocal critic of its policies. In a CNBC interview last year, he called for a “regime change” at the central bank.
During his earlier time at the Fed, Warsh argued that the bank’s large-scale asset purchases, known as quantitative easing, had gone too far. He has also emphasized the need for price stability and affordability in the economy.
Representative French Hill, a Republican from Arkansas, praised the choice. “Chairman Warsh has repeatedly emphasized the importance of placing affordability and price stability at the center of our economic agenda,” Hill said. “His commitment to disciplined monetary policy will help restore confidence in our economy.”
Background and Next Steps
Powell will remain on the Federal Reserve Board as a governor, since he still has two years left in that term. This marks the first time in nearly 80 years that a Fed chair has returned to serve as a regular board member.
Warsh will replace Stephen Miran on the board. Miran was appointed last year to finish out a short term and has consistently pushed for larger and faster rate cuts than his colleagues.
Warsh’s first meeting as chair of the Federal Open Market Committee is scheduled for June 16-17. As the incoming chair, he will also have to divest many of his investments. With holdings worth well over $100 million, Warsh will be the wealthiest Fed chair in history. New ethics rules put in place after past controversies about officials’ trading will require him to sell off many assets.
This confirmation marks a major shift in leadership at the nation’s central bank as it continues to balance the goals of controlling inflation and supporting economic growth.
