Senate clears Warsh to become next Fed chair

Kevin Warsh is expected to take over as chair of the Federal Reserve this week after clearing a procedural cloture vote in the Senate on Monday, though several confirmation steps remain before he officially replaces Jerome Powell, whose term as chair ends on Friday. The full Senate will vote Tuesday on Warsh's appointment to the Board of Governors, followed by another cloture vote on his chairmanship and a final confirmation vote likely on Wednesday. Trump proposed Warsh as Powell's successor five months ago, but the confirmation process was delayed because Republican Senator Thom Tillis of North Carolina had placed a hold on all Trump nominees while the Justice Department investigated Powell regarding cost overruns on Fed headquarters renovations. The investigation was widely viewed as part of the White House's campaign to pressure Powell into resigning or lowering interest rates more aggressively. It was not until April 29, when prosecutors dropped the case, that Warsh secured Banking Committee approval. Warsh, 56, will assume the presidency at a critical moment as the Fed grapples with inflation at 3.5 percent, driven partly by soaring fuel prices following Iran's decision to close the Strait of Hormuz, through which 20 percent of the world's oil previously transited. At the Fed's most recent meeting, three regional bank presidents dissented from the decision to hold rates steady, the highest number of dissenting votes since 1992, signaling resistance to Trump's demands for rate cuts. If confirmed, Warsh will become the wealthiest Fed chair in history, with an estimated net worth exceeding $100 million. He is married to Jane Lauder, an heir to the Estee Lauder cosmetics empire, and holds investments including cryptocurrency, stakes in SpaceX, and funds valued at over $50 million. During his Senate confirmation hearing, he had a heated exchange with Democratic Senator Elizabeth Warren over his wealth and ties to billionaire financier Stanley Druckenmiller. Warsh has pledged to divest conflicting holdings within 90 days of confirmation. Powell, whose term as chair ends Friday, will remain on the Board of Governors until 2028 and has said he will stay at the Fed until all doubts about his management are resolved. The Supreme Court has also allowed Governor Lisa Cook to remain on the board while her case against Trump, who attempted to remove her in August 2025, is examined.