Kevin Warsh Confirmed as Next Federal Reserve Chair in Closest Vote in Modern Era

CNBC reported Wednesday that Kevin Warsh has been confirmed as the next Federal Reserve chair. The 54-45 Senate vote was the most contentious confirmation for a Fed leader in modern times.

Warsh Becomes the Fed’s 11th Modern-Era Chair

Warsh, 56, will succeed Jerome Powell, whose term as chair expires Friday. Powell has held the position since 2018. He will remain at the Fed as a governor, with roughly two years left on that term. His continued presence follows an ongoing inquiry into renovation work at the central bank’s Washington headquarters. The last sitting Fed chair to stay on as a governor did so nearly eight decades ago.

The Senate vote split almost entirely along party lines. Pennsylvania Democrat Sen. John Fetterman was the sole crossover, voting alongside Republicans to confirm Warsh. He becomes the eleventh person to chair the Fed in the modern banking era.

White House spokesman Kush Desai called the confirmation “a welcome step towards finally restoring accountability, competence, and confidence in Fed decision-making.”

A Long Search Ending Under Economic Pressure

The selection process stretched across months, beginning in the summer of 2025. At various points, the search involved nearly a dozen candidates, including Fed Governors Christopher Waller and Michelle Bowman. Warsh ultimately prevailed and fills the seat vacated by Stephen Miran, who was appointed governor in September 2025 to serve out the remainder of Adriana Kugler‘s term after her unexpected resignation.

Miran proved consistently dovish during his tenure. He dissented from each FOMC vote he participated in, pushing for deeper cuts whenever the committee moved cautiously.

Warsh’s History at the Fed and His Critics

This will be Warsh’s second tenure at the central bank. He served as a Fed governor from 2006 to 2011, a period covering the early dismissal of subprime mortgage risks and the subsequent emergency policy response. During that crisis, the Fed dramatically expanded its balance sheet past $4 trillion through asset purchases. Warsh argued at the time that the quantitative easing program had exceeded what was necessary.

After leaving the Fed, he lectured at Stanford’s Graduate School of Business and became a vocal critic of monetary policymakers. In a 2025 CNBC interview, he called for “regime change” at the institution.

Political Pressure Meets Stubborn Inflation

President Donald Trump has openly pushed for lower borrowing costs and repeatedly criticised Powell’s approach as overly restrictive. Warsh’s confirmation arrives at a difficult moment. Recent data shows inflation running well above the Fed’s 2% target. Pipeline price pressures are rising at their fastest pace in more than three years. Markets have responded by trimming rate-cut bets and now assign a meaningful probability to a hike before year-end.

Warsh’s first FOMC meeting as chair is already scheduled.

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