Senate Confirms Kevin Warsh as Federal Reserve Chair

All Senate Republicans and Sen. John Fetterman (D-Pa.) voted to confirm Warsh. Other Senate Democrats opposed the nomination; Sen. Kirsten Gillibrand (D-NY) did not vote. Treasury Secretary Scott Bessent thanked the Republicans and Fetterman, saying Warsh would “usher in a new day” at an institution needing accountability, sound policy guidance and renewed purpose.

The nomination drew scrutiny over the Federal Reserve’s independence. Trump has repeatedly pressed outgoing chair Jerome Powell to lower interest rates. After the vote, Sen. Elizabeth Warren (D-Mass.) called Warsh Trump’s “sock puppet” and said his confirmation was another step in an effort to take over the Fed, benefiting Wall Street rather than working families. Sen. Dick Durbin (D-Ill.), who voted no, said families need a central bank that serves them, not the president and billionaires, and that he was not convinced Warsh would act in the public’s best interest.

The debate comes as inflation measures have climbed. The consumer price index rose 3.8% year over year, its highest rate since May 2023, with energy prices up nearly 18% from a year earlier, according to data released this week by the US Bureau of Labor Statistics. The producer price index, which tracks wholesale prices paid by businesses, was up 6% year over year in April. The source article said the reading suggested inflation could accelerate in coming months.

At Powell’s final meeting as chair last month, the Fed board held rates steady. Several members opposed signaling near-term rate cuts, citing signs of rising inflation. Warsh may therefore face difficulty persuading other board members to lower rates, despite Trump’s preference for cuts.