Kevin Warsh, nominated by President Donald Trump as the next chair of the Federal Reserve, was confirmed Wednesday by the Senate in a 54-45 vote.
Pennsylvania Democrat John Fetterman joined all Republicans in voting to confirm Warsh.
Warsh will replace Fed chair Jerome Powell, who has served as chair of the Federal Reserve since 2018.
In 2006, Warsh was nominated by President George W. Bush to the Federal Reserve Board of Governors, making him the youngest governor in the history of the Federal Reserve.
The first test Warsh will face while in office will be how to combat mounting inflation brought on by higher energy prices because of the war in Iran. He will also assume office during a time of tension between the Federal Reserve and White House.
Senate Majority LeaderJohn Thune said that Warsh has “just the profile of a Federal Reserve chairman.”
Who is Kevin Warsh?
Warsh was born in New York in 1970 and obtained a degree in Public Policy from Stanford University.
Following his time at Stanford, Warsh attended Harvard Law School and graduated cum laude.
Once out of law school, Warsh worked on Wall Street for Morgan Stanley for several years before deciding to pursue a career in government.
President Bush appointed Warsh as executive secretary of the National Economic Council in 2002.
From 2006-2011, Warsh served as a member of the Federal Reserve Board of Governors. During his time on the board, Warsh helped lead the central bank through the 2008 financial crisis.
Jerome Powell will stay on Board of Governors
Jerome Powell was nominated to serve as chair of the Federal Reserve by Trump during his first term in office.
Powell oversaw the Reserve’s response to the Covid-19 pandemic. During that time he took unprecedented measures to quell the effects of the pandemic on the financial markets.
Some of Powell’s decisions have brought him into conflict with the Trump White House. Trump has clashed with Powell over his decisions on interest rates.
Throughout both of his terms, Trump repeatedly suggested firing Powell and, in January, launched a Justice Department investigation against the Fed chair over spending on the remodel of the Federal Reserve’s Washington, D.C., headquarters.
Powell will remain on the Federal Reserve’s Board of Governors after Warsh assumes office, the first time a former chair has done so in 75 years.
Challenges await the new Fed chair
“Leading the Federal Reserve system,” said Senator Thune in a speech on the Senate floor, “is an enormous task.”
“The decisions the Fed makes affect Wall Street, Main Street, and kitchen tables all across the country,” Thune continued.
Although the Fed chair has only one out of 12 votes, the chair has never been outvoted in the history of the Federal Reserve. It is often seen as one of the most powerful positions in Washington.