Senate Confirms Kevin Warsh as Federal Reserve Chair 54-45

The Senate confirmed Kevin Warsh to lead the Federal Reserve on Wednesday in a 54-45 vote. The action clears President Donald Trump's nominee to succeed Chair Jerome Powell as his term ends.

The vote followed a search that started last summer. It split almost entirely along party lines. Only Pennsylvania Democrat Sen. John Fetterman voted in support.

Earlier this week, the Senate approved Warsh for the Fed's Board of Governors. That 14-year post is required before taking the chair role. Warsh first joined the board at age 35 as its youngest member. He now returns at age 56.

Warsh, a lawyer and financier, assumes the post amid economic challenges. The central bank faces persistent inflation, fallout from the war in Iran and a pending Supreme Court case on Fed Governor Lisa Cook. Political pressure also mounts before November midterm elections.

In April 21 testimony, Warsh promised to keep monetary policy "strictly independent." He said he would stick to the Fed's lane and avoid social policy. He criticized the bank for complacency and inertia among large institutions. Sticking to the status quo in a changing economy is outdated and dangerous, he added.

Warsh also showed willingness to coordinate with the White House and Congress on non-monetary issues.

Powell's eight-year stint as chair ends Friday. His board term runs to 2028. He plans to stay until investigations into a Fed headquarters renovation wrap up.

Powell told reporters on April 29 that he would keep a low profile as a governor. "There is only ever one chair of the Federal Reserve Board. When Kevin Warsh is confirmed and sworn in, he will be that chair."

He added, "I will not leave the board until this investigation is fully resolved with transparency and finality." Powell said recent developments encourage him. He will watch the process and decide based on the institution's best interest.

Trump picked Powell in 2017 to replace Janet Yellen. President Joe Biden reappointed him in 2022 for a term ending May 15.

The White House and Federal Reserve did not immediately comment.