The Senate on Tuesday confirmed Kevin Warsh as a member of the Federal Reserve Board of Governors, putting President Donald Trump’s nominee one step closer to becoming the next chairman of the U.S. central bank.
Lawmakers approved Warsh in a vote of 51 to 45. Sen. John Fetterman (D-Pa.) was the only Democrat to support the nomination.
Warsh still must win a separate vote in the Senate to become chairman of the Federal Reserve, which is expected on Wednesday. Governors serve 14-year terms, while the president serves a four-year term.
If confirmed as chairman, Warsh, 56, will replace Jerome Powell, whose eight-year term leading the Federal Reserve ends Friday. Powell, however, has said he plans to remain on the board until a federal investigation into renovations at the Federal Reserve headquarters concludes.
Warsh takes on that role at a time when policymakers face renewed concerns about inflation linked to the war in Iran and rising energy prices. Investors are also watching for signs of how the Fed might approach interest rates and financial market regulation under new leadership.
The former Morgan Stanley banker has attracted attention for his ties to the cryptocurrency industry. Financial disclosures filed with the Office of Government Ethics showed that Warsh had investments in blockchain and digital asset companies linked to decentralized finance, crypto payments and tokenized networks through venture funds and private entities.
The holdings included exposure to companies connected to Bitcoin infrastructure, Layer 1 and Layer 2 blockchain networks, and prediction markets. Warsh has pledged to divest most of those investments if confirmed.
His past investments suggest familiarity with cryptocurrency markets at a time when the Federal Reserve is weighing regulation of stablecoins, banks’ cryptocurrency custody rules and research into digital payment systems.
