US Senate Approves Kevin Warsh as New Fed Chair

The United States Senate officially approved Kevin Warsh as the new Chairman of the Federal Reserve (the Fed) on Wednesday (13/5/2026). Warsh will lead the US central bank amid mounting inflation pressures and debates regarding the future direction of interest rate policies. According to CNBC, Warsh (56 years old) passed through a tight vote with 54 votes in favour to 45 against. This result marks the most contentious vote in modern history for the appointment of a Fed Chairman. He will replace Jerome Powell, who has held the position since 2018, with his term as chairman ending this Friday. The Senate vote proceeded almost entirely along party lines, with only Democratic Senator from Pennsylvania, John Fetterman, providing support for Warsh. Warsh becomes the 11th Fed Chairman in the modern era of the US banking system. Although he will no longer serve as chairman, Powell remains at the Fed as he still has two years left in his term as a central bank governor. Last month, Powell stated he would stay on at least until the investigation into the renovation of the Fed’s headquarters is complete. The last time a former Fed Chairman returned to the board of governors was nearly 80 years ago. In the process of selecting a new Fed Chairman, Warsh competed with several other candidates, including Fed Governor Christopher Waller and Michelle Bowman. White House Spokesperson Kush Desai stated that Warsh’s confirmation is an important step in restoring confidence in the Fed’s decision-making. “The confirmation of Kevin Warsh as Chairman of the Federal Reserve is a positive step towards restoring accountability, competence, and trust in the Fed’s decision-making,” said Desai. This situation has led market participants to reduce expectations for interest rate cuts this year. In fact, some markets are now factoring in the possibility of additional interest rate hikes.