Photo: Alamy
The U.S. Senate on Wednesday confirmed Kevin Warsh as the new chairman of the Federal Reserve, placing him as the leader of the central bank during a period of elevated inflation, economic uncertainty and growing political pressure on the institution’s independence.
The Senate approved Warsh in a 54-45 vote, with Republicans narrowly controlling the chamber and securing confirmation of President Donald Trump’s nominee to replace Jerome Powell.
Warsh, once viewed as a strong inflation-focused policymaker, has more recently aligned with President Trump’s calls for lower interest rates, a stance that has intensified concerns about political influence over the Fed.
Confirmed to a four-year term, Warsh has pledged to bring “regime change” to the central bank, criticizing the Fed as overly political and too transparent in its internal deliberations.
Still, with inflation remaining above the Fed’s long-term target of 2 percent and rising amid fallout from the Trump administration’s conflict with Iran, analysts say Warsh may struggle to persuade fellow policymakers to support immediate rate cuts.
That dynamic could place him at odds with Trump, who repeatedly criticized Powell over interest-rate decisions during his tenure.
“Warsh’s biggest challenge will likely be dealing with President Trump,” said David Wessel, senior fellow at the Brookings Institution.
“The president does not respect the independence of the Fed and he wants interest rates to be lower.”
Earlier this year, Powell said a Justice Department criminal investigation into cost overruns tied to a Federal Reserve renovation project was intended to pressure the central bank’s monetary policy decisions.
That probe followed a separate effort by President Trump to remove Federal Reserve Governor Lisa Cook from the board.
The investigation into Powell has since been dropped as the administration sought to clear the way for Warsh’s confirmation. The U.S. Supreme Court is expected to rule on the legality of removing Cook from the board.
Treasury Secretary Scott Bessent praised Warsh’s confirmation.
“Today @SenateGOP, along with the Democrat who put country before political ideology, confirmed @POTUS’s nominee Kevin Warsh as the next Chairman of the @FederalReserve,” he wrote. “Chairman Warsh will usher in a new day at an institution that is in need of accountability, sound policy guidance, and the renewed sense of purpose to help guide our economy. His chairmanship opens the door and lays the groundwork for every American family to build and grow in the world’s greatest economy,” Bessent added.