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Senate confirms Warsh to Federal Reserve Board

Senate confirms Warsh to Federal Reserve Board

Rule Changes

Warsh becomes Fed chair as Treasury yields hit 17-year highs and rate cuts fade from view

May 13th, 2026: Senate confirms Warsh as Fed chair, 54-45

Overview

The Senate confirmed Kevin Warsh as the 17th Federal Reserve chair on May 13, 54-45—the closest such vote on record. He took over on May 15, when Jerome Powell's term expired and Powell stepped back to a regular governor seat.

The bond market didn't wait. Within hours of his confirmation, Treasury sold 30-year bonds at 5.058%, the highest yield since 2007. Markets are pricing a 97% chance Warsh holds rates steady at his June 16-17 debut.

Why it matters

A new Fed chair just took over with bond yields at a 17-year high and the White House demanding rate cuts.

Questions about this story

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Key Indicators

14 years
Warsh's term as Fed governor
Standard governor term that outlasts the next two presidential elections.
54-45
Chair confirmation vote
Narrowest Federal Reserve chair confirmation in the modern era. Democrat John Fetterman of Pennsylvania was the only crossover vote.
>5%
30-year Treasury yield
Topped 5.058% at a May 13 auction—the highest since before the 2008 financial crisis—as investors priced in sticky inflation under the new chair.
June 16
Warsh's first FOMC meeting
Markets are pricing a 97% chance of no rate change at his debut meeting on June 16-17.

Voices

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Predict 5 ways this could play out. Contrarian picks score more — points lock when the scenario resolves. Log in to play
Timeline Five events from this story — drag them oldest to newest. Log in to play
Connections Sixteen names from the news. Find the four hidden groups of four. Log in to play

People Involved

Kevin Warsh
Kevin Warsh
Chair as of May 15, 2026; first FOMC meeting June 16-17
 Jerome Powell
Jerome Powell
Stepped down as chair May 15, 2026; staying on as governor through 2028
 Donald Trump
Donald Trump
Pushing for aggressive Fed rate cuts
 Tim Scott
Tim Scott
Shepherded Warsh through committee
 John Fetterman
John Fetterman
Sole Democrat to vote for Warsh as Fed chair
 Thom Tillis
Thom Tillis
Voted to confirm Warsh after DOJ dropped Powell probe

Organizations Involved

Board of Governors of the Federal Reserve System
Board of Governors of the Federal Reserve System
Central Bank and Bank Regulator
Under new chair Warsh as of May 15; next FOMC meeting June 16-17

The Federal Reserve sets U.S. interest rates and regulates large banks.
Senate Banking Committee
Senate Banking Committee
Congressional committee
Both Warsh nominations cleared; confirmation process complete

The committee with jurisdiction over the Federal Reserve, banking regulation, and housing finance.

Timeline

November 2017 May 2026

12 events Latest: May 13th, 2026 · 1 month ago Showing 8 of 12
Tap a bar to jump to that date

  1. Senate confirms Warsh as Fed chair, 54-45

    Latest Legislative

    The Senate voted 54-45 to confirm Warsh as chair, the closest such vote in the modern era. Democrat John Fetterman of Pennsylvania was the only senator to cross party lines.

  2. 30-year Treasury auctions above 5% for first time since 2007

    Economic

    Treasury sold $25 billion in 30-year bonds at 5.058%—hours after the Senate confirmed Warsh—the highest auction yield since before the 2008 financial crisis. By May 15, the 30-year yield climbed to 5.114% and the 10-year hit 4.575%.

  3. Senate confirms Warsh as Fed governor

    Legislative

    Roll call vote installs Warsh on the Federal Reserve Board for a 14-year term. The chair vote is expected within days.

  4. Senate clears cloture, 49-44

    Legislative

    A procedural vote ends debate on the governor nomination, setting up the final confirmation vote.

  5. Tillis lifts hold on Warsh nomination

    Legislative

    Sen. Thom Tillis (R-NC) ended his block on the Warsh nomination the day the DOJ dropped its Powell probe. Tillis had said he would not support a new Fed chair while the sitting chair was under criminal scrutiny.

  6. DOJ drops criminal probe of Powell

    Legal

    The Justice Department closed a criminal investigation into Powell over cost overruns at the Fed's Washington headquarters renovation, which grew from $1.9 billion to $2.5 billion. The move cleared a key obstacle for Warsh's floor vote.

  7. Committee approves nomination

    Legislative

    Senate Banking votes Warsh out of committee on a party-line vote.

  8. Banking Committee hearings

    Legislative

    Warsh testifies for two days. Democrats press him on Fed independence; Republicans focus on his inflation-era Fed experience.

  9. Trump nominates Warsh

    Appointment

    Trump announces Warsh for both the open governor seat and the chair role Powell will vacate in May.

  10. Warsh publishes rate-cut argument

    Statement

    A Wall Street Journal op-ed by Warsh argues the Fed is keeping rates too high and damaging the labor market.

  11. Iran-war oil shock hits prices

    Economic

    Conflict in the Persian Gulf sends crude prices sharply higher. U.S. inflation, which had been near 3%, climbs back above 5%.

  12. Trump picks Powell over Warsh

    Appointment

    After interviewing Warsh, Trump chooses Powell for Fed chair. Warsh returns to academia and finance.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

August 1979

Volcker confirmed as Fed chair (1979)

President Carter named Paul Volcker chair of the Fed with inflation running above 11%. Volcker raised the federal funds rate above 19% within two years, triggering a recession and double-digit unemployment.

Then

Mortgage rates topped 18%. Volcker drew protests from farmers and homebuilders, who mailed him pieces of wood from unbuilt houses.

Now

Inflation fell from 13% to under 4% by 1983 and stayed low for a generation. The episode became the template for how an independent Fed beats inflation.

Why this matters now

Warsh inherits a smaller but real inflation problem. The Volcker era is the benchmark for whether a Fed chair will tolerate near-term pain to bring prices back to target.

January 1970

Burns appointed by Nixon (1970)

Nixon installed his economic adviser Arthur Burns as Fed chair, then privately pressured him to keep money loose ahead of the 1972 election. Burns delivered. Inflation rose from 4% in 1971 to 12% by 1974.

Then

Nixon won reelection in a landslide as the economy boomed.

Now

The Burns Fed is the textbook case of a politically captured central bank. The inflation it unleashed took Volcker's recession to undo.

Why this matters now

Critics of the Warsh pick cite Burns as the warning. Supporters argue Warsh's hawkish 2008-era record makes the comparison unfair.

November 2017

Powell elevated by Trump (2017)

Trump chose Powell over Warsh and three other finalists. Within a year Trump was publicly attacking Powell on Twitter for raising rates, calling him a bigger enemy than Xi Jinping.

Then

Powell continued raising rates through 2018, then reversed course in 2019 as growth slowed.

Now

The episode established that a Fed chair can survive sustained presidential pressure. Powell was renominated by Biden in 2022.

Why this matters now

Warsh was the runner-up in 2017. He arrives as chair eight years later with the same president, a different economic backdrop, and a clearly stated preference for cuts.

Sources

(15)
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U.S. Senate Daily Press Gallery The Hill Bloomberg Roll Call NPR CNBC Euronews The Washington Post Fortune Office of Sen. John Fetterman ABA Banking Journal Bloomberg CNBC CNBC CNBC