The Senate on Wednesday confirmed Kevin Warsh as the next head of the Federal Reserve in the most divisive confirmation vote in the central bank’s modern history, handing President Donald Trump a historic victory just as new inflation data clouds the path to the interest rate cuts he has so loudly demanded.
The chamber voted 54-45 to confirm Warsh, 56, making him the 11th Fed chair in the modern banking era and the richest person ever to hold the position. The vote was almost entirely along party lines, with only Pennsylvania Democratic Senator John Fetterman supporting it.
Warsh takes over responsibility from Jerome Powellwhose four-year term ends on Friday — although Powell will not leave the Fed entirely, as he will retain his seat as governor until 2028.
Warsh is no stranger to the marble hallways of the Federal Reserve Bank. he previously served Member of the Board of Governors from 2006 to 2011, becoming the youngest member in the organization’s history at age 35.
His return comes at a far more turbulent moment: as the Fed grapples with inflation persisting above 2%. goalThe economic fallout from the war in Iran and the looming Supreme Court battle over the fate of Gov. Lisa Cook.
Trump did not hide his expectations. President over and over again I clashed With Powell on what he saw as overly restrictive monetary policy, Warsh was chosen from among nearly a dozen candidates — including incumbent governors Christopher Waller and Michael Bowman — with interest rate easing firmly in mind.
However, this week’s data has complicated the picture, with price pressures on pipelines accelerating at their highest pace in more than three years, prompting markets to scale back bets on a rate cut and even prices on the chance of an increase later this year. Warsh is scheduled to hold his first FOMC meeting as chairman on June 16-17.
Warsh: Bitcoin doesn’t bother me
For the Bitcoin community, Warsh’s confirmation carries unique weight. He is the first new Fed head to have direct exposure to digital assets. Including equity share At Flashnet, a Bitcoin payments startup, as well as ties to cryptocurrency index manager Bitwise and stablecoin project Basis.
He has publicly described Bitcoin as an “important asset” and a “very good policy cop,” claiming that its price reflects real-world confidence in the Fed’s management of inflation. “Bitcoin doesn’t bother me,” Warsh said at a Hoover Institution event last year, positioning it as a sign of monetary credibility rather than a threat to the dollar.
Lawmakers are Voting is scheduled tomorrow On the Clarity Act, a closely watched piece of legislation that could reshape regulatory oversight of Bitcoin and digital assets in the United States.
Rep. French Hill (R-AR) He praised The confirmation came, saying that “Warsh’s commitment to disciplined monetary policy will help restore confidence in our economy.”
Critics, including Senator Elizabeth Warren, spent the April 21 confirmation hearing warning that political pressure from the White House could damage the Fed’s independence — a concern that Warsh flatly rejected, pledging to keep monetary policy “fully independent.”
For his part, Powell said that he intends to “stay out of the limelight as governor.”
