The US Senate, by a vote of 54 to 45, confirmed the nomination of Kevin Warsh to become the 17th Chairman of the Federal Reserve Board (FRS).
The only Democrat to support Warsh’s appointment was Pennsylvania Senator John Fetterman. CNN notes that this was “the most politicized vote on Fed chair in history.”
Former Fed Chairman Jerome Powell’s term expires on May 15, 2026. In March, Donald Trump formally nominated Warsh, who had previously advised him on economic policy, to the Senate.
One of the main questions Trump is asking the Fed is to cut interest rates. This is what Powell requested, and Wershe is considered closer to the US President, CNN wrote. However, Wershe takes office amid increasing inflationary pressures due to the war with Iran. Investors expect the Fed to keep interest rates unchanged through the end of the year — or even raise them if inflation rises, angering Trump.
Warsh’s predecessor was Jerome Powell. Trump proposed his candidacy for Fed chairman during his first presidential term in 2017. Joe Biden, who then won the election, extended Powell’s term in 2021, but Trump, who returns to the presidency in 2025, began criticizing Powell for his reluctance to lower interest rates and called for his removal.
In January 2026, Powell was investigated over a $2.5 billion renovation of the central bank’s headquarters in Washington on which the Fed chairman was reporting to Congress. A federal judge later ruled that the investigation was a pretext to pressure Powell. The Justice Department dropped it, but Washington’s attorney general said she might reopen it.