Senate to Confirm Kevin Warsh as Fed Chair
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- Kevin Warsh is set to be confirmed by the U.S. Senate as Federal Reserve chair on Wednesday, after his appointment to the Fed’s Board of Governors was approved.
- Sen. Thom Tillis had threatened to block Warsh’s nomination while the Justice Department investigated Fed Chair Jerome Powell, but the probe was dropped in April, clearing the path for confirmation.
- Jerome Powell will remain on the Fed’s Board of Governors after his chair term ends, creating a potential power split within the central bank.
- Inflation has stayed above the Fed’s 2% target for five years and is accelerating due to rising gas prices, while the Fed’s rate‑setting committee recorded its most dissenting votes in three decades last month.
- Kevin Hassett, director of the White House National Economic Council, told Fox News that markets are relieved Warsh “is going to help lower interest rates over time,” reflecting Trump’s push for rate cuts.
Why it matters: Investors gain clarity as Warsh, a Trump ally, is poised to steer the Fed toward lower rates while Powell staying on the board splits policy direction, threatening the Fed’s independence.
