A360
Key Takeaways✦ Atlas AI
01
Warsh confirmed to Fed Board.
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Potential Fed Chair appointment.
03
Powell probe concluded.
Atlas AI
The U.S. Senate on Tuesday confirmed Kevin Warsh to the Federal Reserve’s Board of Governors in a 51-45 vote, putting him in place for a possible elevation to chair later this week. The confirmation is for a 14-year term on the seven-member board. Warsh is set to take the board seat held by Stephen Miran, whose term technically ended in January but who remained in the role until a successor was confirmed.
The Senate is expected to hold a separate vote on whether to confirm Warsh as chair of the Board of Governors, replacing Jerome Powell. Powell’s four-year term as chair ends on Friday, officials said.
Warsh previously served as a Fed governor from 2006 to 2011, spanning the global financial crisis. In that earlier tenure, he was known for focusing on inflation risks, and he has since criticized the size of the Fed’s balance sheet and aspects of its regulatory approach.
Term runs to 2040
Warsh’s term as a governor extends until 2040. His return adds a former central bank official to the board at a time when the Fed’s independence and its interest-rate decisions have drawn heightened political attention.
During his confirmation process, Warsh publicly committed to maintaining the Fed’s independence in setting interest rates, according to the account of the hearings included in the source material.
Investigation into Powell had stalled nominations
The confirmation came after the closure of a criminal probe into Powell connected to his testimony about a headquarters renovation. The investigation had contributed to delays in advancing Fed nominations, including through a temporary block by Senator Thom Tillis.
The U.S. Attorney for Washington, D.C., closed the investigation and the block was lifted, the source material said. The Fed’s Inspector General is expected to continue reviewing the matter.
The next focus will be the Senate’s separate vote on whether Warsh will become chair, a decision that would determine who leads the central bank as Powell’s chair term expires.
