Overview
- Kevin Warsh won Senate confirmation 54–45 on Wednesday and is set to take over Friday for a four‑year term as Jerome Powell’s time as chair ends.
- Powell will remain on the Fed’s board as a regular governor, and rate changes are set by the 12‑member policy committee rather than the chair alone.
- The nomination advanced after Senator Thom Tillis dropped his hold when the Justice Department closed its probe into Powell, leading to a 13–11 party‑line committee vote.
- Warsh pledged independence, made no specific rate promises, and outlined plans to cut back on forward guidance, shrink the Fed’s bond holdings, and refocus on price stability.
- Economists expect he will resist the deep cuts President Trump wants, citing 3.8% inflation after an oil‑price shock linked to the Iran conflict and likely pushback within the committee.