The United States Senate confirmed Kevin Warsh's nomination to the Federal Reserve Board of Governors on Tuesday, with the chamber expected to confirm him separately as chair later this week. The 51-45 vote grants Warsh a 14-year term on the central bank's board. The Senate then cleared a procedural hurdle to pave the way for a vote on Warsh's confirmation to succeed Jerome Powell as chairman.
The confirmation vote on the chairmanship is likely to occur Wednesday. The chair's term runs for four years. Senators largely split along party lines, with Democrat John Fetterman of Pennsylvania joining Republicans in support of Warsh's confirmation to the board.
Political Context and Independence Concerns
Warsh's confirmation to the board comes as President Donald Trump continues to push the Federal Reserve to slash interest rates. That will be harder for the Fed, however, with inflation surging in April, especially for fuel, food and rent. Warsh's confirmation has been all but guaranteed since Senator Thom Tillis, a North Carolina Republican, lifted his blockade on confirming Fed nominations. Tillis acted after the Department of Justice announced it had ended a criminal inquiry of Powell related to cost overruns in the Federal Reserve's building renovations.
Tillis, Powell and many Democrats portrayed the criminal investigation of the Fed chair as an attempt by the Trump administration to pressure him to lower interest rates more quickly. Most Democrats have opposed Warsh on concerns that he will not maintain the independence of the central bank on monetary policy. Democrats also remain unhappy with Trump's efforts to fire Fed Governor Lisa Cook, which they also cast as part of a Trump campaign to intimidate members of the central bank's board.
Democratic Criticism and Warsh's Pledge
Top Banking Democrat Elizabeth Warren has labelled Warsh a "sock puppet" for Trump and criticized him for refusing to say that Joe Biden won the 2020 election during his confirmation hearing. Warsh has repeatedly pledged to act independently if he is confirmed as Fed chair.
