Trump ally Kevin Warsh confirmed as new Federal Reserve chair
What's the story
Kevin Warsh has been confirmed as the new chair of the Federal Reserve in a historic Senate vote. The confirmation process, which began in summer 2025, concluded with a narrow 54-45 vote on Wednesday. This was the closest confirmation vote for a Fed chair in modern history. Warsh will succeed Jerome Powell, who has held the position since 2018 and whose term ends Friday.
Leadership transition
Warsh's confirmation a major shift for Federal Reserve
Warsh's confirmation marks a major shift in the leadership of the Federal Reserve. The Senate vote was largely along party lines, with only Pennsylvania Democrat Sen. John Fetterman breaking ranks to support Warsh. Despite his departure, Powell will remain at the Fed as he has two years left on his term as governor. He had previously said that he would stay until an investigation into renovations at the Fed's headquarters is complete.
Expectations
Trump expects Warsh to lower interest rates
President Donald Trump has openly said he expects Warsh to lower interest rates, having previously criticized Powell for his monetary policy. Warsh, who was part of a large pool of candidates for the position, is no stranger to the Fed. He served from 2006-2011 during a time when officials initially dismissed risks from the subprime mortgage crisis that triggered a global financial meltdown.
Policy perspective
Warsh's confirmation comes amid inflation concerns
Since leaving the Fed, Warsh has been a vocal critic of monetary policy. In a CNBC interview last year, he called for "regime change" at the central bank. His confirmation comes amid reports of inflation well above the Fed's 2% target and pipeline pressures accelerating at their highest levels in over three years. This has led markets to scale back expectations for rate cuts and even consider an increase later this year.