The Senate on Wednesday confirmed Kevin Warsh as the next chairman of the Federal Reserve in the most divisive confirmation vote in the central bank’s modern history, handing President Donald Trump a decisive victory as new inflation data changed the course of the rate cut he had so loudly sought.
The chamber voted 54-45 to confirm Warsh, 56, making him the Fed’s 11th chair of the modern banking era and its richest person ever. The vote was along party lines, with Pennsylvania Democratic Senator John Fetterman crossing over to support it.
Warsh takes the place Jerome Powellwhose four-year term as chair ends on Friday – although Powell is not leaving the Fed entirely, as he has retained his seat as the board’s governor until 2028.
Warsh is no stranger to the Fed’s marble corridors. He already sent on the Board of Governors from 2006 to 2011, becoming the youngest member in the board’s history at age 35.
His return comes at a critical time: The Fed is fighting inflation that is above 2% targetthe economic crisis over the war in Iran, and the impending Supreme Court battle over the fate of Governor Lisa Cook.
Trump has made no secret of his expectations. President repeatedly struggle and Powell on what he sees as austerity measures, and Warsh was appointed to a panel of about a dozen people — including current governors Christopher Waller and Michelle Bowman — with a view to cutting costs.
However, this week’s data has muddied that picture, as the rise in pipeline prices is at its fastest pace in more than three years, prompting markets to reduce bearish bets and price in the possibility of a hike later this year. Warsh’s first FOMC meeting as chairman is scheduled for June 16-17.
Warsh: Bitcoin doesn’t bother me
For the Bitcoin community, Warsh’s confirmation carries weight. He is the first Fed chair to be equipped with digital devices, including the cost of equity in Flashnet, the introduction of Bitcoin payments, and the cooperation of the crypto index manager Bitwise with the stablecoin project Basis.
He has publicly described Bitcoin as a “valuable commodity” and “the best police officer of policy,” arguing that its price reflects real confidence in the Fed’s inflation control. “Bitcoin doesn’t bother me,” Warsh said at a Hoover Institution event last year, labeling it a symbol of financial integrity rather than a threat to the dollar.
Lawmakers are they plan to vote tomorrow on the Clarity Act, a closely watched law that could reshape the oversight of bitcoin and digital assets in the United States.
Rep. French Hill (R-AR) thanks confirmation, saying that “Warsh’s commitment to monetary policy will help restore confidence in our economy”.
Opponents, including Senator Elizabeth Warren, held a confirmation hearing on April 21 warning that political pressure from the White House could undermine the Fed’s independence – a concern Warsh rejected, promising to maintain an “independent” monetary policy.
Powell, for his part, said he wants to “be low key as governor.”
