Kevin Warsh, U.S. President Donald Trump’s nominee to chair the Federal Reserve, testifies during his confirmation hearing of the Senate Banking, Housing and Urban Affairs Committee on April 21, 2026. (Photo by Andrew Harnik/Getty Images)
WASHINGTON – Kevin Warsh will officially assume the chairmanship of the Federal Reserve after U.S. senators voted Wednesday to endorse economist and former central bank governor Jerome Powell as chairman.
Senators approved Warsh 54-45 almost along party lines. Democratic Senator John Fetterman of Pennsylvania broke ranks with his party and joined Republicans in supporting Warsh’s nomination. Sen. Kirsten Gillibrand, D-N.Y., did not vote.
Warsh, of Florida, takes the helm after President Donald Trump spent much of his second term ranting and threatening to fire Powell unless he lowered interest rates.
Trump is also embroiled in litigation over last summer’s firing of Fed Governor Lisa Cook. Currently the US Supreme Court reviewing whether Trump’s firing of Cook exceeded his presidential powers.
Investigation discontinued
Trump’s anger at Powell even escalated into a Justice Department investigation in January furious some from Trump’s party.
Sen. Thom Tillis, R-N.C., who serves on the narrowly divided Senate Banking, House and Urban Affairs Committee, withheld his support for Warsh’s nomination until the administration dropped its investigation into Powell’s handling of the multi-year renovation of the Fed’s headquarters in Washington.
Office of the U.S. Attorney for the District of Columbia scrapped investigation on April 24, but said the Fed’s inspector general would continue to investigate cost overruns. The administration accused Powell of lying to Congress about the price of the renovation.
Federal judge released the Justice Department’s subpoenas to the Fed and Powell in March, citing in its order “ample evidence that the predominant (if not sole) purpose of the subpoenas is to harass and pressure Powell to resign from the presidency or resign and step aside as Fed chairman.”
Powell’s term as chairman expires on Friday. He will remain as chairman of the management board of the central bank.
Criticism of Democrats
Senator Chris Van Hollen, D-Maryland, criticized Warsh in the Senate before Wednesday’s vote. Van Hollen said Warsh has “turned the inflation issue 180 degrees” since advocating for higher interest rates as Fed chairman during the 2008 financial crisis. The Maryland senator said Warsh is “super dovish on interest rates right now.”
“Markets need confidence that monetary policy decisions are made on the basis of economic evidence, not political pressure or convenience,” Van Hollen said.
“This is especially important now, when prices are rising too fast and President Trump continues to demand a large interest rate cut,” he added.
Inflation data released on Tuesday showed 3.8% raise year-on-year, which is the highest jump since 2023.
