The Senate confirmed Kevin Warsh to the Federal Reserve Board of Governors on Tuesday, moving President Donald Trump’s pick one step closer to becoming the next chairman of the U.S. Federal Reserve.
Lawmakers approved Warsh by a 51-45 vote. Late. John Fetterman (D-Pa.) was the only Democrat to support the nomination.
Warsh still needs to win a separate vote in the Senate to become Fed chairman, which is expected on Wednesday. The governors serve a term of 14 years, while the chairman has a term of four years.
If confirmed as chairman, Warsh, 56, would replace Jerome Powell, whose eight-year term as head of the Fed ends on Friday. However, Powell has said he plans to remain on the board until a federal investigation into renovations at Fed headquarters is completed.
Warsh steps into the role as policymakers face renewed inflation concerns linked to the war in Iran and rising energy prices. Investors are also watching for signs of how the Fed might approach interest rates and financial market regulation under new leadership.
The former Morgan Stanley banker has drawn attention to his ties to the crypto industry. Financial disclosures filed with the Office of Government Ethics showed that Warsh had investments in blockchain and digital asset companies linked to decentralized finance, crypto payments and tokenized networks through venture funds and private entities.
The holdings included exposure to companies connected to Bitcoin infrastructure, Layer 1 and Layer 2 blockchain networks and prediction markets. Warsh promised to divest most of those investments if confirmed.
His past investments suggest familiarity with crypto markets at a time when the Fed is weighing stablecoin regulation, bank crypto depository rules and research into digital payment systems.
