In a largely party-line vote on Wednesday, May 13, 2026, the U.S. Senate confirmed Kevin Warsh as Chairman of the Federal Reserve Board of Governors, succeeding Jerome Powell whose term ends Friday. The vote passed 54-45, with Pennsylvania Democrat Sen. John Fetterman joining Republicans in support — the only cross-aisle vote on the nomination.
This confirmation caps a multi-step process that began earlier in the week. On Tuesday, May 12, the Senate first confirmed Warsh to a 14-year term as a Fed Governor in a 51-45 vote, clearing the path for the separate chairmanship vote.
Who Is Kevin Warsh?
Kevin Warsh, 56, is no stranger to the Federal Reserve or high-stakes economic policy. A former member of the Fed’s Board of Governors (serving from 2006 to 2011), he was one of the youngest appointees in the institution’s history. During the 2008 financial crisis, Warsh played a key role in the Fed’s response alongside then-Chair Ben Bernanke.
Prior to his first stint at the Fed, Warsh worked at Morgan Stanley and served as Special Assistant to President George W. Bush for Economic Policy. He holds degrees from Stanford University and Harvard Law School. President Donald Trump nominated him in late January 2026 to lead the central bank, praising his experience and independence.
The Road to Confirmation
Warsh’s path wasn’t entirely smooth. His nomination faced delays amid a federal investigation into outgoing Chair Jerome Powell, which was later dropped. Senate Democrats raised concerns about potential threats to Fed independence, given Warsh’s ties to the Trump administration and Wall Street background. During his April confirmation hearing before the Senate Banking Committee, Warsh firmly stated: “I will be an independent actor if confirmed as chair of the Federal Reserve.”
The Senate Banking Committee advanced his nomination on a 13-11 party-line vote in late April, followed by procedural votes this week that moved quickly once momentum built.
What to Expect from Chair Warsh
Warsh takes the helm at a challenging time. Inflation pressures persist in parts of the economy, global uncertainties loom (including geopolitical tensions), and markets will closely watch the Fed’s next moves on interest rates.
• Policy Outlook: Warsh has historically favored a rules-based approach to monetary policy and has been critical of excessive Fed intervention. Analysts expect him to prioritize price stability while maintaining flexibility.
• Independence: The big question is how Warsh will navigate relations with the White House. His assurances of independence will be tested early.
• Markets Reaction: Stocks and bonds reacted with measured optimism to the news, viewing Warsh as a steady hand with deep market knowledge.
Historical Context
Warsh becomes the 17th Chair of the Federal Reserve. Like his predecessors, he inherits an institution that wields enormous influence over borrowing costs, employment, and financial stability worldwide.
“Too Late” Powell’s befuddled disaster of a tenure was marked with high inflation (which he famously and erroneously termed “transitory” and aggressive, rate hikes, a questionable lowering of rates just prior to a national election — setting a complex stage for the transition. Powell’s missteps on inflation timing and policy sequencing have drawn significant criticism from economists across the spectrum.
Powell’s tarnished legacy also includes presiding over massive cost overruns on the Federal Reserve’s headquarters renovation project. Originally estimated at $1.9 billion in 2019 for the historic Marriner S. Eccles Building and adjacent structures, the price tag ballooned to approximately $2.5 billion — an overrun of roughly $600 million of U.S. taxpayers’ money. Powell repeatedly defended the overruns while acknowledging “the cost overruns are what they are.”
Looking Ahead
With Powell’s term ending this week, the leadership handoff will be swift. Warsh is expected to be sworn in promptly and could chair his first FOMC meeting in the coming months.
MacDailyNews Take: Welcome to the Warsh Era! Whether Warsh can deliver stability and credibility in a polarized environment remains to be seen — but his deep experience gives him a strong foundation.
Don’t let the door hit you in the ass on the way out, Powell!
On interest rates, Powell was way late to hike, then didn’t go nearly high enough, and then started cutting too early. Three strikes and you ought to be out. – MacDailyNews, November 15, 2024
Now Powell is too late to cut. Four strikes and counting. – MacDailyNews, October 28, 2025
Receipts:
In July 2023, the Fed stopped raising rates too soon. – MacDailyNews, July 2, 2024
A premature rate cut by the Fed is of higher probability in an election year. – MacDailyNews, April 2, 2024
As we wrote in February 2023, “When certain quarters, including the Fed, delude themselves and others that ‘inflation is transitory’ and waste at least a year before doing a mere portion of what is necessary* (interest rate hikes), the price will be paid for being delusional and late.”
‘Tis best to get a handle on inflation, if you know how, while you still can. – MacDailyNews, May 11, 2021
Stop the misguided crusade against domestic energy production and profligate federal spending and inflation will be stopped dead in its tracks. It’s not difficult. – MacDailyNews, May 11, 2022
For new generations, sometimes tough lessons have to be retaught and learned the hard way. As we go through this, remember: It’s always darkest before the dawn. – MacDailyNews, July 14, 2022
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“Don’t let the door hit you in the ass on the way out, Powell!”
Powell has not yet indicated he is going anywhere, his term ends January 2028. He didn’t set rates, the whole board did.