Senate confirms Kevin Warsh as Fed governor, clearing path to chair vote
The US Senate confirmed former Fed member Kevin Warsh to the Federal Reserve Board of Governors by 52 to 47, clearing the procedural path for President Trump to nominate him as chair to succeed Jerome Powell. The move has revived debate over the future direction of monetary policy.
The Senate vote fell largely along party lines, with three Democratic senators abstaining and the Republican caucus holding its bloc. Warsh previously served as a Federal Reserve Governor from 2006 to 2011 and is known for his role during the financial crisis.
The White House said it would formally name Warsh as chair nominee by mid-June. Current Chair Jerome Powell's term expires next May. Warsh has argued publicly that the Fed strayed from its price-stability mandate in recent years and called for tighter discipline going forward.
Market reaction was measured, but Wall Street strategists flagged that a Warsh-led Fed could reopen debate over the medium-term rate path and balance-sheet strategy. Economists expect next week's FOMC meeting to play out under the cloud of the appointment uncertainty.
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