Overview
- Kevin Warsh won Senate approval Wednesday in a 54–45 vote that mostly split along party lines, with Sen. John Fetterman the lone Democrat to support him.
- The path cleared after prosecutors in Washington dropped in late April a criminal probe into Jerome Powell over Fed headquarters renovation costs that had delayed the nomination.
- Jerome Powell’s term as chair ends Friday, and he plans to remain on the Board of Governors, an uncommon step that keeps his vote on interest rate decisions.
- Warsh has pledged to act independently, to shrink the Fed’s balance sheet, to rely less on public hints about future moves, and to sell large personal assets under ethics rules.
- His first major test arrives at the June policy meeting, as annual inflation reached 3.8% in April on higher energy costs tied to the Iran conflict and the White House continues to push for lower rates.