Kevin Warsh has moved closer to becoming the chair of the Federal Reserve after the Senate approved his nomination to the Board of Governors with a 51-45 vote, largely along party lines. Only Senator John Fetterman from Pennsylvania voted across party lines in favor of Warsh, who previously served on the board from 2006 to 2011.
The next step for Warsh is a vote for the chair position, anticipated to occur on Wednesday. His confirmation will end the brief tenure of Stephen Miran, another Trump nominee, who filled a seat vacated by Adriana Kugler in August 2025.
If confirmed, Warsh, 56, will succeed Jerome Powell, whose eight-year term as chair concludes on Friday, although Powell will remain on the board until 2028 while a renovation investigation at the Fed's headquarters is completed.
Warsh's appointment comes at a challenging time for monetary policy, with inflation pressures stemming from the ongoing war in Iran and tariffs imposed by Trump last year, leading to the highest inflation rates in nearly three years. Despite a stable labor market, Warsh has advocated for a 'regime change' at the Fed and believes the benchmark interest rate could be lower.
However, market expectations suggest the Fed will maintain its current rates, with a potential rate hike being factored in ahead of the Federal Open Market Committee's next meeting on June 16-17. CNBC has reached out to Warsh for further comments