Breaking News: After a monthslong confirmation saga involving a DOJ investigation, a Senate blockade, and the most divisive Fed chair vote in modern history, the US Senate confirmed Kevin Warsh as the 11th Chairman of the Federal Reserve in a 54-45 vote Wednesday — handing President Trump one of his most sought-after domestic victories. But Trump's allies are already warning that the rate cuts he has demanded may not come anytime soon — as inflation surges to a three-year high driven in part by his own Iran war.
What Happened
The Senate voted 54-45 to confirm Warsh in the most divisive Fed chair confirmation vote in history. The vote was almost completely along party lines, with only Pennsylvania Democrat Sen. John Fetterman crossing over to vote for Warsh. Trump has made no secret he expects Warsh to lower rates — but the economic data released just before confirmation makes that harder than ever.
Key Details
Who Is Kevin Warsh? Warsh, 56, previously served on the Fed's Board of Governors from 2006 to 2011. He then worked at Stanford's Hoover Institution and billionaire Stanley Druckenmiller's personal investment office. He has been critical of the Fed in recent years, calling for "regime change" at the central bank. He is also the wealthiest Fed chair ever, with holdings over $100 million.
Why Rate Cuts Won't Come Easily. Inflation rose 3.8% in the past 12 months — the biggest annual increase in nearly three years. The Iran war snarled tanker traffic in the Strait of Hormuz, spiking crude oil and gasoline prices. Three FOMC members at the April meeting signaled their next move could as easily be a rate increase as a cut.
Markets Are Pricing No Cuts. CME FedWatch shows a 97% chance of no rate change at Warsh's first FOMC meeting — scheduled for June 16-17. Treasury Secretary Bessent said he'd understand if the Fed waits "for some clarity" before cutting.
Warsh Promised Independence. Warsh told the Senate he would use his own judgment and not take orders from the White House. He denied charges from Sen. Elizabeth Warren that he would be Trump's "sock puppet." The chair is technically only one of 12 FOMC votes — and cannot control rate decisions alone.
Powell Stays On. In a break with tradition, Powell will remain on the Fed's governing board beyond his chair term — determined to safeguard the institution from political pressure. He will continue to have a vote on the 12-member FOMC rate-setting committee.
The Extraordinary Battle to Get Here. Trump's confirmation effort included a DOJ criminal investigation of Powell that a judge quashed as designed to "harass" him. Sen. Tillis blocked all Fed nominees until the DOJ dropped the probe. The investigation was closed last month — but left open to potential revival.
Trump Still Trying to Fire Lisa Cook. Trump's attempt to fire Biden-appointed Fed Governor Lisa Cook continues — but has so far been blocked by the federal courts.
Why It Matters
Trump spent over a year attacking Powell and fighting to install his own Fed chair. He succeeded. But the very day Warsh was confirmed, inflation data showed prices rising at their fastest pace in three years — driven by the Iran war's disruption of global oil markets.
The cruel irony: Trump's own war may be the single biggest obstacle to the rate cuts he wanted a new Fed chair to deliver. He may have won the battle to install his chair — but the war on interest rates is far from won.
Latest Updates
✅ Senate confirms Kevin Warsh as Fed chair 54-45 Wednesday
✅ Most divisive Fed chair confirmation vote in history
🔴 Inflation hits 3.8% annually — highest in nearly three years
🔴 Markets: 97% chance of no rate cut at June 16-17 FOMC meeting
🔴 Three April FOMC members signaled next move could be rate INCREASE
🔴 Powell stays on as Fed governor — unusual break with tradition
🔴 Trump still trying to fire Biden Fed governor Lisa Cook — courts blocking
✅ Treasury Secretary Bessent says Fed should wait for clarity
Conclusion
Trump finally has his Fed chair. Kevin Warsh is confirmed and ready for June 16. But the rate cuts Trump wanted are almost certainly not coming in June. Markets give it a 97% chance Warsh holds rates steady. Inflation is at 3.8%. The Iran war keeps oil expensive. And Warsh himself promised independence.
Getting a new Fed chair was supposed to be the solution. The problem was always the economy. And the economy is not cooperating.
Stay with us for coverage of Warsh's first FOMC meeting on June 16-17.
FAQ
Q1: Who is Kevin Warsh?
Warsh, 56, is a former Fed governor
(2006-2011), Stanford Hoover Institution
fellow, and Trump's pick to replace
Jerome Powell. He was confirmed 54-45 —
the most divisive Fed chair confirmation
ever — and is also the wealthiest Fed
chair in history with holdings
over $100 million.
Q2: Will Warsh cut rates?
Almost certainly not in June. Markets
price a 97% chance of no rate change
at his first meeting. Inflation is at
3.8% — a three-year high. Three FOMC
members could vote to raise rates.
Warsh promised the Senate he'd act
independently and not follow
White House orders on rates.
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