Kevin Warsh was narrowly confirmed Wednesday by the Senate to serve as the 17th chair of the Federal Reserve.
Warsh will formally succeed Fed Chair Jerome Powell, whose eight-year tenure was marked by several economic crises and a heated clash with the White House to defend the US central bank’s political independence.
Warsh was confirmed in a 54-45 vote, mostly split along party lines, with only Democratic Sen. John Fetterman of Pennsylvania crossing the aisle to vote in favor of Warsh’s nomination. It was the most partisan vote for a Fed chair nominee in history, underscoring the unease among Democrats with Trump’s fight against the Fed, though Republicans broadly welcome Warsh’s leadership.
Warsh is widely viewed as more aligned with President Donald Trump, who has long demanded rate cuts, but he is set to take office as inflation pressures intensify due to the US-Israeli war with Iran.
The Fed chair is just one vote on the Federal Open Market Committee that considers rate moves. While Warsh would control the agenda at every Fed meeting, he would not have unilateral authority over what the majority of the committee decides.
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