Trump's Fed chair pick Kevin Warsh confirmed by US Senate

May 13, 2026

The US Senate confirmed Kevin Warsh as the new Federal Reserve chair in a narrow 54-45 vote that mostly followed party divisions, with only one Democrat supporting him. Warsh inherits an extremely challenging situation as he replaces Jerome Powell, whose term ends Friday after numerous conflicts with President Trump over monetary policy. The new chair faces contradictory pressures: rising inflation driven by the US-Israel conflict in Iran and energy price spikes that typically require maintaining or raising interest rates, while Trump demands rate cuts to stimulate the economy.

Who is affected

Kevin Warsh (incoming Fed chair)
Jerome Powell (outgoing Fed chair, subject of federal probe)
President Donald Trump
Stephen Miran (current Fed governor being replaced)
Senator John Fetterman (only Democrat who voted for Warsh)
Senator Elizabeth Warren (ranking Democrat opposing Warsh)
American consumers facing rising costs for energy, food, housing, and airfare
The Federal Reserve board members
Senate Banking Committee members

What action is being taken

The Trump administration is conducting a federal probe into Jerome Powell
Warsh's nomination is going to President Trump's desk for final approval
The US-Israel war in Iran is ongoing and driving up living costs
The Strait of Hormuz closure is causing oil prices to spike

Why it matters

This appointment matters because the Federal Reserve chair controls monetary policy that directly impacts inflation, interest rates, and the overall US economy during a critical period of economic instability. The narrow, party-line confirmation reflects increasing politicization of key government positions and raises concerns about the Fed's independence from political pressure. Warsh faces an unprecedented challenge of managing soaring inflation (3.8% annually, the highest since May 2023) while under direct pressure from the president to cut rates, which contradicts standard economic policy for controlling inflation. The outcome will affect every American through its impact on borrowing costs, savings returns, employment, and the prices they pay for essential goods and services.

What's next

Warsh's nomination goes to President Trump's desk for final approval
Warsh will take over as Fed chair when Powell's term ends on Friday
Most economists expect interest rates to be held until next year, with some warning of a potential rate increase

Read full article from source: BBC