Senate Confirms Kevin Warsh as Federal Reserve Governor in 51-45 Vote

The Senate confirmed Kevin Warsh as a governor on the Federal Reserve Board on Tuesday in a 51-45 vote. Pennsylvania Sen. John Fetterman was the only Democrat to join Republicans in support. The action clears the way for a separate vote on installing Warsh as chair, expected as soon as Wednesday.

Warsh, 56, previously served as a Fed governor from 2006 to 2011. He would fill the seat held by Stephen Miran, a prior Trump appointee whose term had technically expired in January but who remained eligible to serve until a successor was confirmed.

Confirmation as chair would end the four-year term of the current chair, which expires Friday. The current chair has indicated plans to remain on the board until 2028.

Warsh returns at a time when inflation has reached its highest level in nearly three years. In public statements, Warsh has called for a “regime change” at the central bank. He has argued that benchmark interest rates can be lower, pointing to potential productivity gains from artificial intelligence as a factor that could allow rates to fall while keeping inflation in check over the long term.

Markets are pricing in the possibility of steady rates or even a hike at the next rate-setting meeting scheduled for June 16-17. Economists have noted that heavy spending on artificial intelligence infrastructure, including data centers and energy, could temporarily push inflation higher in the near term.

During confirmation hearings last month, Warsh emphasized the importance of the central bank’s independence. ” Warsh has been critical of past central bank decisions, including the 2020 change to the inflation framework that he said contributed to later price surges.

He has criticized central bankers for straying into areas such as climate change and racial inequity, urging the institution to “stick to its lane” and foster more open debate in policy meetings.