Amid growing concerns about independence, the Senate approved Trump’s nomination of Kevin Warsh to chair the Federal Reserve on a 54-45 vote.
Published May 13, 2026
Kevin Warsh has been confirmed by the Senate to become chairman of the Federal Reserve, replacing Jerome Powell, whose term ends on Friday.
On Wednesday, the Senate voted 54-45 to confirm Warsh, with Democratic Sen. John Fetterman of Pennsylvania joining his Republican colleagues amid controversy surrounding the confirmation process.
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On Tuesday, Mr. Warsh, 56, who was nominated by President Donald Trump to succeed Mr. Powell, was also approved by the Senate by a 51-45 vote to join the central bank’s board, giving Mr. Fetterman the support of Republicans.
Warsh’s oath of office in both positions is pending the White House’s final signature on documents sent by the Senate.
Independence concerns
Warsh’s confirmation comes amid growing concerns about the independence of the U.S. central bank and rising inflation.
During his confirmation hearing before the Senate Banking Committee late last month, he was accused by Sen. Elizabeth Warren of being Trump’s “sock puppet.”
Warsh, who previously served on the central bank’s board from 2006 to 2011, supported raising interest rates in 2024 when Joe Biden was president, but changed his mind when Trump took office, arguing for lower rates and echoing Trump’s calls for more aggressive rate cuts.
The Trump administration has been pushing for tighter controls on central banks over the last year. President Trump has attempted to fire Fed Board Director Lisa Cook, a Biden appointee amid allegations of mortgage fraud, and has called for a Department of Justice (DOJ) investigation into Powell’s management of a building renovation project that a federal judge determined was an excuse to pressure Powell to cut interest rates or resign.
The Justice Department suspended its investigation after Sen. Thom Tillis (North Carolina), ranking member of the Senate Banking Committee, said he would not vote to confirm President Trump’s nominee to lead the central bank until the investigation is concluded.
policy shift
Warsh has been pushing for “systemic change” within the central bank. He says he wants to shrink its balance sheet, which should allow it to lower interest rates.
The next meeting, the first to be chaired by Warsh, is scheduled for June 16-17.
CME FedWatch, which tracks the likelihood of certain monetary policy outcomes, says there is a 97% chance that interest rates will be left unchanged at the next policy meeting. The central bank is expected to keep interest rates at 3.50-3.75% for the remainder of 2026.
This comes against the backdrop of soaring oil prices and consumer prices rising 0.6% in April on a monthly basis, following a 0.9% rise in March, according to the Consumer Price Index report released on Tuesday. On an annual basis, the increase was even more significant, with prices up 3.8% since this time last year.
