By Nicole Goodkind
Kevin Warsh is one Senate vote away from running the Federal Reserve.
The chamber confirmed him to the Fed's Board of Governors on Tuesday with a vote of 51-45, almost entirely along party lines. Pennsylvania Democrat John Fetterman was the lone crossover.
A separate confirmation vote for the chairmanship itself is expected as soon as Wednesday, just days before Jerome Powell's term as chair expires Friday.
Warsh, 56, is no stranger to the board. He previously served on it from 2006 to 2011. But the job he is about to take on is considerably more difficult than the one he left. Inflation is at a three-year high, driven by tariffs and the economic fallout from war with Iran.
Markets aren't expecting the Fed to move on rates anytime soon, even though Warsh has made no secret of his desire to lower them and has called for a "regime change" at the central bank.
Getting here wasn't simple. The last major obstacle to his chairmanship was removed last month when Sen. Thom Tillis (R., N.C.) announced he would support Warsh's confirmation, ending a standoff that had threatened to stall the nomination in the Senate Banking Committee.
Tillis had said he wouldn't let Warsh out of committee as long as the Justice Department's criminal investigation of Powell remained active. With Republicans holding a 12-10 edge on the Banking Committee, one defection was enough to block the nomination.
The logjam finally broke when U.S. Attorney Jeanine Pirro announced her office was dropping the criminal probe and handing the matter to the Fed's own inspector general, which has been investigating cost overruns from the central bank's multibillion-dollar Washington headquarters renovation since last July.
Powell has said he plans to stay on the board, where his term runs through 2028, until he feels confident that any legal threat has fully passed.
Write to Nicole Goodkind at nicole.goodkind@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 12, 2026 14:00 ET (18:00 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments