The Senate will next vote on Kevin Warsh as head of the Federal Reserve.
Kevin Warsh will be returning to the Federal Reserve Board of Governors.
The U.S. Senate voted 51–45 to approve Warsh’s nomination to a 14-year term on the central bank’s board on May 12, joining six other members. Four senators did not file a vote.
Sen. John Fetterman (D-Pa.) crossed party lines to support President Donald Trump’s nominee.
Warsh’s tenure as Fed governor will run until 2040.
He previously served on the board from 2006 to 2011, when he resigned over differences regarding the leadership’s post-crisis quantitative easing program.
Governors serve 14-year terms to prevent political pressure. Their roles consist of voting on monetary policy, supervising and regulating the financial system, and overseeing the Fed’s 12 regional banks.
The vote also marked the end of Stephen Miran’s brief tenure on the board.
Miran, who previously served as head of the White House’s Council of Economic Advisers, was nominated by the president last summer to fill the seat vacated by Adriana Kugler. It is unclear if he plans to return to the Trump administration.
Senators will next vote on Warsh’s confirmation as head of the Federal Reserve, which could happen as early as May 13.
Walking a Minefield
Warsh’s return to the Fed could be marred by challenges, mainly due to the 11-week-old Iranian conflict reviving price pressures across the U.S. economy.
April’s annual consumer inflation rate accelerated to 3.8 percent, the highest level since May 2023 and above consensus forecasts.
The war has lifted global energy prices, forcing drivers to pay more at the pump.
The national average for a gallon of gasoline—as of May 12—is parked at $4.50.
Structural inflation could also be under threat. Twelve-month core inflation, which excludes volatile energy and food prices, edged higher to 2.8 percent, topping estimates.
Warsh has been a frequent critic of the Fed’s policy decisions.
He has argued that the central bank can lower interest rates as the artificial intelligence (AI) boom would be disinflationary and reduce business and consumer prices.
At the same time, Warsh has stated that the Fed should scale back its balance sheet use.
A point of contention is whether Warsh will maintain Fed independence.
He has reaffirmed his support for monetary autonomy. But it does not mean it is under threat if elected officials weigh in on policy, he said.
“I do not believe the operational independence of monetary policy is particularly threatened when elected officials—presidents, senators, or members of the House—state their views on interest rates,” Warsh said in his opening remarks in front of the Senate Banking Committee.
By Andrew Moran
