Senate confirms Warsh to Fed board, Chair vote ahead

Investing.com -- The Senate confirmed Kevin Warsh's nomination to the Federal Reserve Board of Governors on Tuesday in a 51-45 vote, granting him a 14-year term on the central bank's board.

The chamber is expected to hold a separate vote on Warsh's confirmation as chair later this week. A procedural vote is planned shortly to advance his nomination to succeed Jerome Powell as chairman, with the confirmation vote on the chairmanship likely to occur Wednesday. The chair's term runs for four years.

Senators largely split along party lines during Tuesday's vote. Democrat John Fetterman of Pennsylvania joined Republicans in support of Warsh's confirmation to the board.

Warsh's confirmation to the board comes as President Donald Trump continues to push the Federal Reserve to slash interest rates. Inflation surged in April, especially for fuel, food and rent.

Senator Thom Tillis, a North Carolina Republican, lifted his blockade on confirming Fed nominations after the Department of Justice announced it had ended a criminal inquiry of Powell related to cost overruns in the Federal Reserve's building renovations. Tillis, Powell and many Democrats portrayed the criminal investigation as an attempt by the Trump administration to pressure Powell to lower interest rates more quickly.

Most Democrats opposed Warsh on concerns that he will not maintain the independence of the central bank on monetary policy. Democrats also remain unhappy with Trump's efforts to fire Fed Governor Lisa Cook.

Warsh has repeatedly pledged to act independently if he is confirmed as Fed chair.

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