The US Senate has confirmed Kevin Warsh as chair of the Federal Reserve in a 54-45 vote that split largely along party lines, with only Democratic Senator John Fetterman crossing the aisle. The confirmation, which marks the most divisive vote for the position in history, gives Warsh a four-year term as chair and a 14-year seat on the Fed's rate-setting board.
Warsh will officially take over on 14 May, succeeding Jerome Powell, whose term as chair ends. He assumes leadership at a time when the central bank faces pressure from the Trump administration to lower interest rates, even as inflation rises to 3.8% and geopolitical tensions persist. A White House spokesperson called the confirmation a step towards restoring accountability and confidence in Fed decision-making.
Warsh, a former Fed governor and Wall Street banker, has echoed President Trump's calls for lower rates but must convince the Fed's 12-member voting board. His past reputation as an 'inflation hawk' may complicate this, as higher rates typically cool spending and prices. Critics, including Senator Elizabeth Warren, have labelled him Trump's 'sock puppet', while Warsh has pledged to maintain Fed independence.
Outgoing Chair Jerome Powell announced he will remain on the Fed board as a voting governor, citing ongoing scrutiny of renovations at the central bank's headquarters. Powell described the scrutiny as a pretext to pressure the Fed into lowering rates.
