The U.S. Senate has approved Kevin Warsh’s nomination to the Federal Reserve Board of Governors. The appointment, proposed by Donald Trump, passed with 51 votes in favor and 45 against.
The next step will be Warsh’s formal nomination for the position of Federal Reserve chair. The Senate will then hold another vote on his candidacy.
In Washington, Warsh’s appointment is widely viewed as a compromise choice for Trump. Although he supports lowering interest rates—a policy also favored by the president—his views on monetary policy do not fully align with the White House’s approach.
Warsh remains skeptical of stimulating the economy through a prolonged period of “cheap money,” warning that such a policy could accelerate inflation.
According to U.S. media reports, Trump would have preferred to see a more loyal candidate leading the Federal Reserve, particularly Judy Shelton, whose views on monetary policy are considerably closer to his own. However, White House officials reportedly feared her nomination would fail to secure enough support in the Senate, where even some Republicans favor preserving the Fed’s relative independence from the executive branch.
Warsh’s term on the Federal Reserve Board of Governors will last 14 years. If confirmed as chair, he would lead the central bank for the next four years.