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The U.S. Senate confirmed Kevin Warsh to a 14-year term on the Federal Reserve Board, clearing a major step before a separate vote on his nomination as Fed chair.
The Senate approved Warsh’s nomination as governor in a 51-45 vote on Tuesday. Democrat John Fetterman joined Republicans in supporting the nomination.
51-45 Vote Sends Warsh Back to Fed Board
Warsh previously served as a Fed governor from 2006 to 2011, including during the global financial crisis. His return comes as the central bank faces pressure from inflation, tariffs and higher energy risks tied to the Iran conflict.
Democrats raised concerns during the confirmation process about whether Warsh would protect the Fed’s independence from the White House. Warsh told lawmakers he would make independent decisions if confirmed.
Wednesday Chair Vote Could Replace Powell
Warsh still needs Senate approval to become Federal Reserve chair, with a vote expected Wednesday.
If confirmed, he would replace Jerome Powell as chair. Powell’s term as chair ends Friday, though he has said he plans to remain on the Fed board for an undetermined period. The separate vote means Warsh has cleared the board seat but has not yet secured the Fed’s top job.
Markets Watch Warsh’s Rate-Cut Stance
Warsh has called for changes at the Fed and has outlined arguments for lower interest rates, though markets are not expecting an immediate policy shift. Investors are more likely to watch whether he changes the Fed’s communications, inflation framework or balance-sheet approach if confirmed as chair.
For crypto markets, the vote matters because Fed policy expectations can influence liquidity, risk appetite and Bitcoin’s near-term direction. The chair vote is now the main event. If Warsh is confirmed, he would take over the central bank as markets weigh inflation risks, higher energy prices and the possibility of rate cuts later this year.
