US Senate confirms Kevin Warsh as Fed governor

The United States Senate on May 12 confirmed Kevin Warsh to a 14-year term as governor of the Federal Reserve, a move widely seen as paving the way for his possible succession of Jerome Powell as chair of the U.S. central bank.

The confirmation passed 51–45, with only one Democrat, Senator John Fetterman of Pennsylvania, joining Republicans in support. The Senate also triggered a 30-hour procedural clock, allowing for a subsequent vote on Warsh’s nomination as Federal Reserve chair as early as May 13. Powell’s term as chair is set to expire on May 15, Reuters reports.

A lawyer, financier and former Fed governor, Warsh is expected to assume a central role at a time when the Fed’s independence has come under increasing political scrutiny, particularly amid pressure from the Trump administration to lower interest rates.

President Donald Trump’s efforts to influence monetary policy have included an attempted removal of Fed Governor Lisa Cook, a case now before the Supreme Court, and support for a Department of Justice inquiry into Powell’s oversight of a controversial building renovation. Although a federal judge described the probe as a pretext to pressure Powell to resign or cut rates, the investigation was later dropped, though prosecutors have indicated it could be reopened.

Powell has said he intends to remain on as a governor after his chairmanship ends, citing what he described as “a series of legal attacks on the Fed which threaten our ability to conduct monetary policy without considering political factors.”

Warsh has signalled a sharp shift in direction, describing plans for “regime change” at the central bank, including closer coordination with the Treasury Department and the White House on non-monetary policy and efforts to reduce the Fed’s balance sheet, which he argues could support lower interest rates.

The leadership transition comes as rising oil prices linked to the conflict with Iran have pushed up inflation and dampened expectations for rate cuts. Financial markets are now pricing roughly a one-in-three chance of a rate increase by December, with the current federal funds target range at 3.50%–3.75%.

The Federal Reserve chair holds one of 12 votes on the Federal Open Market Committee and is one of 19 participants in broader policy deliberations. The next Fed meeting, scheduled for June 16–17, could be the first chaired by Warsh if his nomination is completed.

By Sabina Mammadli