Kevin Warsh speaks during a hearing on his nomination to the Federal Reserve on April 21 in Washington, D.C. The Senate confimed Warsh as a member of the Fed’s Board of Governors on Tuesday. Photo by Bonnie Cash/UPI | License Photo
The U.S. Senate voted Tuesday to confirm Kevin Warsh as a member of the Federal Reserve Board of Governors, putting President Donald Trump’s pick one step away from the position of Fed chair.
The Senate vote to confirm Warsh as leader of the seven-member Board of Governors is expected Wednesday, CNBC reported. He would replace Jerome Powell, whose term as chair ends Friday.
The vote Tuesday was 51-45, mostly along party lines except for Sen. John Fetterman, D-Pa., who voted to confirm Warsh. Governors serve terms of 14 years. Chairs serve terms of four years.
Warsh also served as a governor at the Federal Reserve from 2006 to 2011. He has said that he will resign from several positions, including as a financial adviser to investor Stanley Druckenmiller, if he was confirmed. His net worth is over $100 million, making him the wealthiest nominee in recent history. Warsh takes the Fed seat held by Stephen Miran, who was temporarily named to the board last year.
Trump first nominated Warsh as Fed chief in late January, but the process has been slowed by a Justice Department investigation of outgoing Chairman Powell. U.S. Attorney Jeanine Pirro dropped that investigation in late April, although she has said she will restart it “should the facts warrant doing so,” CBS News reported.
Powell was also a Trump appointee, but the president has criticized him frequently because the Fed has declined to lower interest rates. Warsh has also been a frequent critic of the Fed and has said he is open to lowering interest rates, but he said in confirmation hearings that he would be “an independent actor” if confirmed.
Trump “never asked me to predetermine, fix or decide on any interest rate decision, nor would I ever do so,” Warsh said, CBS News reported.
The Federal Open-Market committee, which sets rates, will meet again in mid-June.
