Kevin Warsh, U.S. President Donald Trump’s nominee to chair the Federal Reserve, testifies during the Senate Committee on Banking, Housing and Urban Affairs’ confirmation hearing on April 21, 2026. (Photo by Andrew Harnik/Getty Images)
WASHINGTON – Kevin Warsh will officially take over the leadership of the Federal Reserve after U.S. senators voted Wednesday to confirm the economist and former central bank governor to replace Chairman Jerome Powell.
The senators agreed with Warsh 54-45 almost party political. Democratic Sen. John Fetterman, D-Pa., broke with his party and joined Republicans in supporting Warsh’s nomination. Sen. Kirsten Gillibrand, D-N.Y., did not vote.
Warsh, of Florida, takes the helm after President Donald Trump spent most of his second term firing and firing Powell if he didn’t cut interest rates.
Trump is also embroiled in litigation over his firing of Fed Governor Lisa Cook last summer. The US Supreme Court is currently examination whether Trump’s firing of Cook exceeded his authority as president.
Investigations stopped
Trump’s anger at Powell even escalated in a Justice Department investigation in January annoyed some in Trump’s own party.
Sen. Thom Tillis, R-N.C., who sits on the closely divided Senate Banking, House and Urban Affairs Committees, withheld his support for Warsh’s nomination until the administration dropped its investigation into Powell’s handling of a multiyear renovation of the Fed’s headquarters in Washington, D.C.
The U.S. Attorney’s Office for the District of Columbia scrapped The investigation concluded on April 24, but the Fed’s inspector general said it would continue to investigate cost overruns. The government had accused Powell of lying to Congress about the cost of renovations.
A federal judge dismissed The U.S. Department of Justice’s criminal subpoenas to the Fed and Powell in March, in which he “cites ample evidence that the primary purpose of the subpoenas (if not the sole purpose) is to harass and pressure Powell to either defer to the president or resign and make way for a Fed chair.”
Powell’s term as chairman expires Friday. He will remain on the central bank’s board as acting governor.
Democratic criticism
Sen. Chris Van Hollen, D-Md., criticized Warsh in the Senate before Wednesday’s vote. Van Hollen said Warsh has made a “180-degree turn” on inflation since he advocated for higher interest rates as Fed governor during the 2008 financial crisis. The Maryland senator said Warsh is now a “super dove on interest rates.”
“Markets need confidence that monetary policy decisions are made based on economic facts and not on political pressure or convenience,” Van Hollen said.
“This is especially important now when prices are rising too quickly and President Trump is still calling for a significant cut in interest rates,” he added.
Inflation data released on Tuesday showed an inflation rate of 3.8%. escalate The highest jump year after year since 2023.
