The U.S. Senate has confirmed Kevin Warsh to the Federal Reserve Board of Governors in a narrow 51-45 vote, marking a pivotal change in the central bank’s leadership. A separate vote to confirm Warsh as chair, replacing Jerome Powell whose term ends on Friday, is slated for later this week.
Warsh, who previously served as a Fed Governor until 2011, returns to the board with a term extending to 2040. He fills the seat vacated by Stephen Miran, who held the position since last September and remained until his successor was confirmed, despite his term ending in January. Miran had consistently dissented on interest rate decisions, pushing for deeper cuts in meetings this year and in the final three of 2025.
Warsh’s track record includes sharp criticism of the Fed’s approach to its balance sheet, bank oversight, data handling, and public messaging. Yet, over the past year, he has hinted at a willingness to support lower interest rates, a departure from the inflation-focused hawkishness of his earlier tenure.
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“I will be an independent actor if confirmed as chair of the Federal Reserve,” Warsh said during the process.
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The backdrop to this transition has been turbulent for the central bank. Outgoing chair Jerome Powell faced intense scrutiny, including subpoenas tied to a criminal investigation over his testimony on a multibillion-dollar headquarters renovation. A judge later struck down those subpoenas, ruling they aimed to pressure Powell into cutting rates or stepping down. Last month, U.S. Attorney for D.C. Jeanine Pirro shuttered the probe, passing it to the Fed’s Inspector General.
Powell, whose governorship continues until January 2028, intends to stay on the board until the investigation fully resolves. His decision to remain as a rank-and-file member comes after political friction, including a blockade by Senator Thom Tillis of North Carolina, who delayed Fed nominees until the probe concluded.
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