Warsh, Trump's pick to head Federal Reserve, clears Senate hurdle

The Senate voted Tuesday to confirm Kevin Warsh to the Federal Reserve's board of governors and also voted to advance his nomination to serve as chairman of the central bank, where he will have significant influence over future interest rates.

The Senate voted 51 to 45 to confirm Warsh to the Fed's board of governors and then voted 51-45 to advance his nomination to replace Jerome Powell as Fed chair.

Every Republican who voted supported Warsh's nomination.

Centrist Sen. John Fetterman (D-Pa.) was the only Democrat to vote for Warsh.

Tuesday's votes put Warsh in position to succeed Powell, who has clashed with President Trump over cutting interest rates, this week.

Powell's term as Fed chairman expires on May 15 though his term as a member of the board of governors runs through January of 2028. Powell has said he intends to remain on the board after his stint as chairman ends.

Warsh's confirmation to the Fed and his expected elevation to the chairman's role comes after a months-long battle between Trump and Sen. Thom Tillis (R-N.C.), a member of the Senate Banking Committee, who held up Warsh's nomination in response to the Justice Department's criminal investigation of Powell.

Tillis said he would not release his hold on Trump's Fed nominees until federal prosecutors ended their investigation of Powell over testimony he delivered to the Senate about the costly renovation of the Fed's headquarters in Washington.

The Justice Department announced late last month that it would drop its investigation of Powell, opening the way for Warsh to advance through the Senate Banking Committee and onto the Senate floor.

Warsh, who is 55, previously served as a member of the Fed's board of governors from 2006 and 2011 and during that time developed a reputation as an inflation hawk.

He served as a special assistant to the president for economic policy under President George W. Bush before joining the Fed.

He played a key role in developing the Fed's response to the 2008 financial crisis.

Senate Democrats grilled Warsh at his confirmation hearing about whether he would stand up to Trump's repeated demands for the Fed to cut rates significantly to spur the economy as it faces headwinds from global tariffs and now higher energy prices.

Warsh testified that he believes that preserving the Fed's independence is important and told lawmakers that he did not "make a deal" with the president on rates before his nomination.

"I take my responsibility to be an independent leader of the Federal Reserve very seriously, if confirmed by this body. I take the integrity of the office and my personal integrity very seriously," he told senators in April.

Warsh was pressed by Sen. Elizabeth Warren (D-Mass.) during his confirmation hearing over his ownership of $100 million in non-disclosed assets. Warren asked if any of those investments were affiliated with Trump or his family, companies that have facilitated money laundering or Chinese-controlled companies.

Warsh responded that he had worked "tirelessly" with the Office of Government Ethics to ensure his investments were in compliance with ethics rules.