The Senate confirmed Kevin Warsh to the Federal Reserve Board on Thursday, clearing a path for him to succeed Jerome Powell as chair when Powell leaves office on Friday. Warsh, a former Fed governor, is now widely seen as the leading candidate to take over the central bank's top post.
Confirmation vote and timing
Warsh's confirmation passed along party lines, with Republicans backing his return to the board after a decade away. The vote came just one day before Powell's scheduled departure, a move that lets the White House install a new chair without an interim vacancy at the helm.
Powell's exit and transition
Jerome Powell is preparing to step down as Fed chair on Friday, ending a term that saw the central bank navigate the pandemic, inflation surges, and rate hikes. The timing of Warsh's confirmation allows for a seamless handover — Warsh can be nominated for chair immediately and, pending a separate Senate vote, take over without leaving the board empty.
What comes next
President Joe Biden is expected to nominate Warsh as Fed chair in the coming days. That nomination will need its own confirmation process, but Thursday's vote effectively clears the biggest hurdle. Warsh would then set the tone for monetary policy at a moment when the economy faces mixed signals on inflation and growth.
