The Senate voted Tuesday to confirm Kevin Warsh to the Federal Reserve’s board of governors and advanced his nomination to replace Jerome Powell as chairman of the central bank.
The votes were both 51-45, with every Republican in support and centrist Sen. John Fetterman (D-Pa.) as the only Democrat to cross the aisle.
Path to confirmation
Warsh’s path was held up for months by Sen. Thom Tillis (R-N.C.), who blocked the nomination in response to the Justice Department’s criminal investigation of Powell over testimony he gave about the costly renovation of the Fed’s Washington headquarters.
The DOJ announced late last month it would drop the investigation, clearing the way for Warsh to advance through the Senate Banking Committee and onto the floor.
Powell’s term as Fed chairman expires May 15, though his term as a board member runs through January 2028. Powell has said he intends to remain on the board after stepping down as chair.
Warsh’s background
Warsh, 55, previously served on the Fed’s board of governors from 2006 to 2011, earning a reputation as an inflation hawk.
He served as a special assistant to President George W. Bush for economic policy before joining the Fed, and played a key role in shaping the Fed’s response to the 2008 financial crisis.
Independence questions
Senate Democrats pressed Warsh at his confirmation hearing over whether he would resist Trump’s repeated demands for significant rate cuts.
Warsh testified that he did not make any deal with the president on rates before his nomination, stating:
“I take my responsibility to be an independent leader of the Federal Reserve very seriously, if confirmed by this body. I take the integrity of the office and my personal integrity very seriously.”
Sen. Elizabeth Warren (D-Mass.) also questioned him over $100 million in non-disclosed assets, asking whether any were tied to Trump, money laundering facilitators, or Chinese-controlled companies.
Warsh said he had worked “tirelessly” with the Office of Government Ethics to ensure his investments were in compliance.
