Kevin Warsh passed a key Senate vote on Tuesday to appoint him to the Federal Reserve’s board of governors, taking another step toward becoming chairman of the Federal Reserve.
The Senate approved Warsh’s nomination with a near party-line vote of 51-45. Pennsylvania Democratic Sen. John Fetterman was the only one to cross the line and vote for President Donald Trump’s nomination.
The next vote for the board member, who served on the board from 2006 to 2011, is a chairman election scheduled for Wednesday.
The governor’s term is 14 years, while the chairman’s term is four years.
Warsh’s vote also means the end of Stephen Millan’s short term on the board. Millan was also President Trump’s nominee to fill the vacancy left by Adrianna Coogler, who resigned in August 2025.
If approved, Warsh, 56, will succeed Jerome Powell, whose eight years at the helm will officially end on Friday. However, Mr. Powell’s term as director runs through 2028, and he has indicated he intends to remain in the post until a review of plans to renovate the central bank is completed.
Mr. Warsh comes to the Fed at a difficult time for policy.
The war with Iran and the tariffs President Trump imposed last year put upward pressure on inflation, pushing the headline data to its highest level in nearly three years. At the same time, the labor market is benefiting from an environment with fewer employees and fewer layoffs, keeping unemployment under control despite inconsistent employment growth.
Mr. Warsh has called for “systemic change” at the Fed in several public statements and said he believes the central bank’s benchmark interest rate can be lowered. However, the market expects the Fed to keep rates unchanged and is even pricing in an increased probability of future rate hikes.
The Federal Open Market Committee, which decides interest rates, will next meet on June 16-17.
CNBC has reached out to Warsh for comment.
