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The Senate on Tuesday confirmed Kevin Warsh to the Federal Reserve board, clearing another step in President Trump’s effort to install him as the central bank’s next chairman.
In a 51-45 vote, the Senate also approved a motion to invoke cloture, which ends debate on Warsh’s nomination. A vote to confirm him as chairman is expected to take place as soon as Wednesday evening.
Warsh, 56, was selected by Trump in January to replace outgoing Chair Jerome Powell. The nomination has faced resistance in the Senate since then.
Sen. Thom Tillis (R-NC), who voted in favor of Warsh’s confirmation, had previously said he would block approval until the Department of Justice ended its criminal investigation into Powell related to the Fed’s over-budget headquarters renovation.
The DOJ scrapped the probe on April 24, clearing the way for Warsh. Trump has indicated he is open to an alternative investigation into Powell, whom he has criticized for not cutting interest rates quickly enough.
Sen. Elizabeth Warren (D-Mass.), the top Democrat on the Senate Banking Committee, opposed Warsh’s nomination. During a Senate hearing last month, Warren called Warsh a “sock puppet,” accusing him of flip-flopping on his inflation hawk stance to “snag his dream job” under Trump.
Warsh is married to billionaire Estee Lauder heiress Jane Lauder. He has argued that artificial intelligence will drive a productivity boom while keeping prices low, enabling the Fed to cut rates.
His view is that AI increases worker productivity, allowing companies to produce the same output with fewer staff, which he says could reduce inflation over the long run.
Economists cited in the article have warned that heavy spending tied to AI—particularly for data center construction and energy needs—could reheat inflation in the short term.
Warsh has also been critical of other Fed officials, comparing them to “pampered princes.” During his Senate hearing last month, he declined to verbally defend Powell or Fed Governor Lisa Cook against the government’s criminal investigations.
He also criticized the Fed’s focus on climate change and racial inequity under the Biden administration, saying the central bank needs to “stick to its lane.”
Warsh blamed the Fed’s change to its inflation framework in 2020 for the “inflation surge…we’re still living with.” He also criticized Fed officials for being outspoken about the direction of interest rates, saying the central bank needs leaders who are “humble,” “nimble,” and able to “react.”
He added that he wants more of a “family fight” over policy direction at future central bank meetings.
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