Kevin Warsh was confirmed Wednesday as the next Federal Reserve chair, putting a longtime critic of the central bank’s crisis-era policies in charge as President Donald Trump pushes for lower interest rates and inflation data complicates the case for cuts.
The Senate voted 54 to 45, largely along party lines, with Pennsylvania Democrat John Fetterman joining Republicans. The vote marked the narrowest confirmation margin ever for a Fed chair.
Warsh will succeed Jerome Powell, whose term ends Friday. He is expected to lead his first Federal Open Market Committee meeting on June 16-17, when policymakers will debate rate cuts amid elevated inflation.
April producer prices rose 6% year-over-year, and consumer price data showed the strongest increase in three years, pushing rate cut expectations down and pricing in some risk of another increase.
Warsh, 56, served as a Fed governor from 2006-2011 and later became a critic of the central bank's expanded balance sheet. Trump has repeatedly criticized Powell for tight policy. Warsh has denied making any policy commitments, though his nomination raises questions about Fed independence.
Rep. French Hill praised Warsh's confirmation, emphasizing his commitment to affordability and price stability.
Warsh will also take Stephen Miran's seat on the Fed board. Miran had dissented repeatedly, favoring larger rate cuts.