Kevin Warsh Confirmed as Next Federal Reserve Chair in Closest Senate Vote on Record

CNBC reported Wednesday that Kevin Warsh has been confirmed as the next chair of the Federal Reserve. The Senate approved his nomination 54-45, the narrowest confirmation margin for a Fed chief in modern history.

A Razor-Thin Vote With Near-Perfect Party Lines

The result was almost entirely split by party. Only Pennsylvania Democratic Senator John Fetterman broke ranks to support Warsh. Warsh, 56, becomes the eleventh Fed chair of the modern banking era. He replaces outgoing chair Jerome Powell, whose leadership term formally expires this Friday.

Powell is not leaving the institution entirely. He still has roughly two years remaining on his board governorship. He indicated last month he would stay on at least while an internal inquiry into headquarters renovation work continues. A sitting chair returning to a governor seat is almost without precedent, last occurring nearly eight decades ago.

Background: A Lengthy Search and a Long-Standing Critic

The confirmation caps a process that began in summer 2025. The White House vetted nearly a dozen candidates, including current Fed governors Christopher Waller and Michelle Bowman, before landing on Warsh. White House spokesman Kush Desai called the outcome “a welcome step towards restoring accountability and confidence in Fed decision-making.”

Warsh’s history with the central bank stretches back to 2006. During his first term, which ran through 2011, he witnessed the Fed’s initial failure to flag subprime risks and its subsequent emergency response to the global financial crisis. That response included the first wave of quantitative easing, which pushed the Fed’s balance sheet above $4 trillion. Warsh publicly argued the program exceeded what was necessary. After departing, he joined Stanford’s Graduate School of Business as a lecturer and became a consistent critic of Fed policymaking, calling last year for what he described as “regime change” at the institution.

Warsh Inherits a Complicated Rate Outlook

The confirmation arrives at a delicate moment. Recent data shows inflation running above the Fed’s 2% target, with pipeline price pressures at their steepest in more than three years. Markets have pared back rate-cut expectations and are now assigning some probability to a hike later in 2026. President Donald Trump has been vocal about wanting lower borrowing costs, a preference he made clear throughout his public criticism of Powell.

Warsh’s first scheduled meeting as FOMC chair is set for June 16-17. His predecessor on the board, Stephen Miran, had repeatedly dissented in favour of deeper cuts. Warsh now inherits both the chair and those unresolved policy tensions.

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