The US Senate confirmed Kevin Warsh as the next chair of the Federal Reserve on Wednesday in a 54-45 vote, the closest margin in the modern history of Fed chair confirmations. Senator John Fetterman of Pennsylvania was the only Democrat to cross party lines, joining all Republicans to install President Donald Trump's pick atop the central bank. Warsh, 56, succeeds Jerome Powell, whose term as chair expires Friday, May 15, 2026, though Powell will remain on the Board of Governors.
Warsh takes office at a fraught moment for US monetary policy. April's Consumer Price Index rose 3.8 percent year over year, up from 3.3 percent in March, with energy accounting for roughly 40 percent of the jump amid Middle East oil price spikes and ongoing tariff pass-through. The new chair has been a vocal critic of Powell's Fed and last year called for "regime change" at the central bank, raising questions about whether he will deliver the aggressive rate cuts President Trump has spent more than a year demanding.
Warsh's first meeting as chair of the Federal Open Market Committee is scheduled for June 16-17, where markets will get their first read on his policy direction. Trump allies have already warned that rate cuts may have to wait given the latest inflation data.