Senate approves Kevin Warsh as Fed governor, chair vote ahead

President Donald Trump’s nominee Kevin Warsh moved closer to becoming the next Federal Reserve chair after the Senate approved his nomination to the Fed’s Board of Governors in a 51-45 vote on Tuesday.

Democratic Senator John Fetterman was the only lawmaker to cross party lines and support the nomination.

The Senate is expected to vote on Wednesday on confirming Warsh as chair, replacing Jerome Powell, whose eight-year term ends Friday.

Warsh, 56, previously served on the Federal Reserve board from 2006 to 2011. 

His entry into the Fed Chair would come as the US faces rising inflation pressures linked to tariffs and the Iran conflict. He has called for major changes at the Fed and supports lower interest rates.

However, markets expect the Federal Reserve to keep rates unchanged when policymakers meet on June 16-17.