Senate confirms Kevin Warsh, bringing Donald Trump closer to a leadership change at the Fed

Kevin Warsh has cleared a decisive hurdle towards the chairmanship of the US Federal Reserve following the Senate's approval of his nomination to the Fed's Board of Governors. The upper chamber confirmed his candidacy in a 51-45 vote that largely followed party lines. Democratic Senator John Fetterman was the sole member of his party to join Republicans in backing President Donald Trump's pick.

56-year-old Warsh previously served on the Fed's Board of Governors from 2006 to 2011. A second Senate vote is now required to confirm his appointment as Chair of the US Central Bank. Barring any unforeseen developments, he will succeed Jerome Powell, whose term as Chair expires this Friday after eight years at the helm of the institution. Powell has, however, said that he intends to remain a Governor until 2028, citing in particular the ongoing investigation into cost overruns related to the renovation of the Fed's headquarters in Washington.

Kevin Warsh will take office amid a complex economic backdrop marked by inflationary pressures reignited by the war with Iran and the tariffs implemented by Donald Trump. Nevertheless, the US labor market remains relatively resilient, despite more erratic job growth. In recent months, Warsh has advocated for a "regime change" at the Fed and has expressed support for lower interest rates. Markets, however, anticipate that rates will be held steady in the near term at the next monetary policy meeting scheduled for June 16-17.