Senate Set to Confirm Warsh as Fed Chair, Raising Focus on Rate-Cut Pressure

The Senate is expected to confirm Kevin Warsh as Federal Reserve chair on May 13, 2026, installing President Donald Trump’s nominee at a tense moment for the central bank as inflation remains above target and political scrutiny of Fed independence intensifies. Warsh’s path cleared after Republican Sen. Thom Tillis dropped opposition following the Justice Department’s April decision to end its investigation into outgoing Chair Jerome Powell. The Senate approved Warsh for the Fed Board of Governors on May 12, with Pennsylvania Sen. John Fetterman the only Democrat joining Republicans. Warsh, 56, inherits a divided rate-setting committee after the largest number of dissenting votes in more than three decades. Inflation has exceeded the Fed’s 2% target for five years and is accelerating amid higher gasoline prices. Powell plans to remain on the Fed board after his chair term ends, potentially complicating internal dynamics. Warsh told senators Trump had not asked him to commit to any rate decision and said he would act independently.