The US Senate on Tuesday confirmed Kevin Warsh to the Federal Reserve's Board of Governors, moving President Donald Trump a step closer to installing him as the next Fed chair after months of uncertainty surrounding outgoing chief Jerome Powell.
The Senate voted 51-45 to approve Warsh for a 14-year term on the seven-member board. A separate Senate vote to confirm him as chair, replacing Powell whose four-year tenure ends Friday, is expected later this week.
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Warsh replaces Stephen Miran, whose temporary term continued after a vacancy created by an early resignation. Warsh's new term will run until 2040.
A former Fed governor during the global financial crisis, Warsh has since worked at the Hoover Institution and advised billionaire investor Stanley Druckenmiller. He has frequently criticised the Fed's handling of interest rates, regulation and communication policies, while recently signalling openness to rate cuts.
Trump has repeatedly attacked Powell for refusing to aggressively slash interest rates, calling him a “moron” and a “stubborn mule.”
During his confirmation hearing, Warsh insisted he would preserve the Fed's independence. “I will be an independent actor if confirmed as chair of the Federal Reserve,” he said.
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Warsh's confirmation had briefly faced hurdles amid a criminal probe linked to Powell's testimony on the Fed headquarters renovation project. The investigation was later closed, allowing Senate Republicans to move forward with the nomination.
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