US Senate confirms Kevin Warsh to Federal Reserve Board

The US Senate confirmed Kevin Warsh on Tuesday to serve as a member of the Federal Reserve Board of Governors, moving President Donald Trump’s nominee one step closer to becoming the next head of the US central bank.

The Senate voted 51-45 to confirm Warsh to a 14-year term.

The confirmation covers Warsh’s membership on the Fed’s Board of Governors. A separate vote is expected on his nomination to chair the Board of Governors for a four-year term, succeeding Jerome Powell.

The vote followed the Senate Banking Committee’s approval of Warsh’s nomination last week in a 13-11 party-line vote, after Republican Sen. Thom Tillis dropped his opposition.

Tillis had threatened to block the nomination from advancing in committee until the Justice Department ended its investigation into Powell for renovations at the Federal Reserve’s Washington, DC, headquarters and alleged cost overruns.

The Justice Department later closed its probe and asked Federal Reserve Inspector General Michael Horowitz to review the matter, clearing the way for Tillis to support moving Warsh’s nomination forward.

Warsh’s expected elevation comes as the Trump administration presses for lower interest rates, tax cuts and deregulation, putting the Fed’s policy direction and institutional independence under close market scrutiny.

Powell’s term as Fed chair is set to end this week.