Kevin Warsh Confirmed as Federal Reserve Chair

The U.S. Senate confirmed Kevin Warsh as the next chair of the Federal Reserve on May 13, 2026, in a 54-45 vote. He succeeds Jerome Powell and was sworn into office at a White House ceremony on May 22, 2026, with Supreme Court Justice Clarence Thomas administering the oath.

Confirmation and Swearing-In

Warsh was confirmed to a 14-year term as a member of the Board of Governors and a four-year term as chair. The vote was largely along party lines, with only Democratic Senator John Fetterman of Pennsylvania crossing party lines to support him.

"I think Kevin is a fantastic person and a very strong pick." — Senator Tim Scott (R-SC), Chair of the Senate Banking Committee

Nomination and Confirmation Process

President Donald Trump nominated Warsh in January 2026, succeeding Jerome Powell, whose term as chair was set to expire on May 15, 2026. Trump had publicly criticized Powell for not reducing interest rates fast enough and called his 2018 appointment a mistake.

The Senate Banking Committee held a confirmation hearing on April 21, 2026. The hearing took place while a Department of Justice criminal investigation into Powell was ongoing, centered on cost overruns related to a $2.5 billion renovation project at the Federal Reserve's headquarters.

Senator Thom Tillis (R-NC) initially blocked all Fed nominees until the investigation was resolved. The DOJ closed its probe on March 27, 2026, with U.S. Attorney Jeanine Pirro announcing the investigation would be handled by the Fed's inspector general. A court had previously quashed subpoenas, with Judge James Boasberg citing "essentially zero evidence" of a crime.

Following the closure, Tillis ended his blockade, and the committee advanced Warsh's nomination on April 29, 2026.

Background and Professional History

Warsh, 56, previously served on the Federal Reserve Board of Governors from 2006 to 2011, becoming the youngest governor in the central bank's history at age 35. He was appointed by President George W. Bush.

During his prior tenure, Warsh helped broker the sale of Bear Stearns to JPMorgan Chase in 2008. He left the Fed Board in 2011, citing disagreements over post-financial crisis stimulus.

Warsh holds a degree from Stanford University (1992) and a law degree from Harvard Law School (1995). He worked in mergers and acquisitions at Morgan Stanley and served as an economic policy adviser under President George W. Bush. More recently, he was a visiting fellow at Stanford's Hoover Institution and a lecturer at the Stanford Graduate School of Business. He is married to Jane Lauder.

His financial disclosure forms show assets between approximately $131 million and $226 million, with over $100 million undisclosed due to confidentiality agreements. Senators questioned Warsh about his wealth and connections with the late Jeffrey Epstein during his confirmation hearing.

Policy Positions and Statements

Independence

Warsh stated during his confirmation hearing that he is committed to ensuring monetary policy remains strictly independent. He said Fed independence is not threatened when elected officials express views on interest rates. Warsh stated he has not made any agreement with President Trump regarding interest rate decisions. President Trump stated at the swearing-in ceremony that he wants Warsh to be "totally independent."

Inflation and Mandate

"Inflation is a choice, and the Fed must take responsibility for it." — Kevin Warsh

Warsh expressed low confidence in traditional measures of inflation and indicated that inflation above the Fed's 2% target would not prevent him from lowering interest rates. He emphasized his commitment to maintaining low inflation but did not mention the Fed's mandate of pursuing maximum employment in his prepared remarks.

Past Criticism of the Fed

Warsh has argued that the Fed has strayed into areas beyond its authority, including climate change and social inequality. He stated, "The Fed must stay in its lane. Fed independence is placed at greatest risk when it strays into fiscal and social policies where it has neither authority nor expertise."

He has called for a "reform-oriented Federal Reserve" and "regime change" at the institution, including greater coordination with the Treasury, a smaller balance sheet, fewer policy meetings per year, and changes to inflation measurement and communication strategies.

Economic Context at Confirmation

At the time of Warsh's confirmation, the U.S. economy faced several conditions:

• Inflation: The Labor Department reported a 3.8% increase in the cost of living over the past twelve months, the largest annual rise in nearly three years. The Fed's target is 2%.
• Interest Rates: The Federal Reserve maintained its benchmark rate in a range of 3.5-3.75%, with only Governor Stephen Miran dissenting.
• Energy Prices: Energy prices remained elevated due to military conflict between the U.S., Israel, and Iran. Average gasoline prices exceeded $4 per gallon in all states and $5 in seven states.
• Labor Market: Described as weak but stable.
• Consumer Sentiment: The University of Michigan survey fell to 44.8 points, down from 49.8 in April.

Jerome Powell's Future Role

Jerome Powell's term as chair ended on May 15, 2026. However, Powell holds a separate term as a Federal Reserve board member that extends to January 2028. He stated he intends to remain on the board, pending the resolution of the DOJ investigation.

The Federal Reserve named Powell chair pro tempore until Warsh was sworn in. This arrangement—a former chair remaining on the governing board—has not occurred since the late 1940s.

Confirmation Vote

The confirmation vote was the most divisive for a Fed chair in history.

Senator Elizabeth Warren (D-MA) criticized the timing of the Justice Department's decision to drop its probe, alleging it was done to facilitate Warsh's confirmation.