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On Tuesday, the U.S. Senate confirmed Kevin Warsh as a member of the Federal Reserve Board of Governors, advancing President Donald Trump’s nominee closer to the role of Fed chair. The vote was 51-45, largely divided along party lines, with Democrat Senator John Fetterman of Pennsylvania breaking ranks to support the confirmation.
Warsh, who previously served as a Federal Reserve governor from 2006 to 2011, is expected to be formally voted in as chair on Wednesday. If confirmed, he would succeed Jerome Powell, whose term concludes this Friday. Governors on the Fed’s seven-member board serve 14-year terms, while the chair serves a four-year term.
With a net worth exceeding $100 million, Warsh is noted as the wealthiest nominee to join the board in recent history. He plans to step down from several positions, including his role as a financial adviser to investor Stanley Druckenmiller, upon confirmation. Warsh will fill the seat temporarily held by Stephen Miran since last year.
Warsh’s nomination faced delays amid a Justice Department inquiry into Chairman Powell, which was dropped in late April but could be reopened if new evidence arises. Despite being a Trump appointee, Powell has drawn criticism from the president for the Fed’s reluctance to reduce interest rates. Warsh, who has expressed openness to lowering rates, emphasized during confirmation hearings that he would act independently and not pre-commit to any policy decisions at the president’s request.
The Federal Open Market Committee, responsible for setting interest rates, is scheduled to meet again in mid-June.