Kevin Warsh Confirmed as Next Federal Reserve Chair in Closest-Ever Senate Vote

CNBC reported Wednesday that Kevin Warsh has been confirmed as the next chair of the Federal Reserve. The Senate approved his nomination 54 to 45, the narrowest confirmation margin in the central bank’s modern history.

A Near Party-Line Confirmation

The vote fell almost entirely along partisan lines. Only Pennsylvania Democratic Senator John Fetterman broke ranks to support Warsh. At 56, Warsh becomes the 11th chair of the Fed in the modern era. He fills the seat being vacated by Jerome Powell, whose eight-year tenure as chair expires Friday. Powell retains his governor position for the two remaining years of that term.

President Donald Trump has openly pushed for lower borrowing costs and repeatedly criticised Powell’s approach as overly restrictive. Warsh’s confirmation delivers Trump the Fed leadership he has long sought.

Warsh’s Record and Past Criticism of the Fed

This marks Warsh’s return to the central bank after an earlier stint from 2006 to 2011. His first tenure spanned the subprime mortgage collapse and the sweeping emergency response that followed. He later became a vocal critic of the quantitative easing programme that expanded the Fed’s balance sheet past $4 trillion, arguing policymakers had overreached. Since departing, Warsh has lectured at Stanford’s Graduate School of Business and served on several corporate boards. In a CNBC interview last year, he called for “regime change” at the institution.

Also Read: Fed Holds Rates Steady Amid Tariff Uncertainty

Inflation Complicates the Path Forward

Warsh steps into the role against a difficult backdrop. Fresh data released this week showed consumer prices still running well above the Fed’s 2% target. Producer-price pipeline pressures accelerated to their fastest pace in more than three years. Markets have dialled back rate-cut expectations considerably and are now pricing in a small chance of a rate increase before year-end.

What Changes at the Board

Warsh replaces Governor Stephen Miran, who had been appointed in September 2025 to fill a short unexpired term. Miran repeatedly dissented from FOMC decisions, pushing for deeper cuts than the committee approved. Warsh’s first scheduled FOMC meeting as chair runs June 16 to 17. He will also rank as the wealthiest person to lead the Fed, with reported holdings well above $100 million. Existing ethics rules will require him to divest a significant portion of those investments before taking full command of the institution.

Read Next: Trump Pushes Fed for Rate Cuts as Tariff Inflation Bites