The U.S. Senate is set for a critical cloture vote on Kevin Warsh’s nomination to the Federal Reserve Board of Governors at 5:30 p.m. ET on Monday, May 11. The vote is the final procedural hurdle before a full confirmation that could see President Donald Trump’s pick become the next Fed chair, just days before Jerome Powell’s term expires on May 15. The Senate Banking Committee advanced Warsh’s nomination on April 29 in a 13–11 party-line vote, which Senator Elizabeth Warren’s office called the first fully partisan committee vote on a Fed chair nominee in the panel’s history.
The path to confirmation appeared smoother after Republican Senator Thom Tillis dropped his hold on the nomination. Tillis had vowed to block the process unless the Department of Justice ended its criminal investigation into Powell over alleged cost overruns in the renovation of the Fed’s headquarters. U.S. Attorney for the District of Columbia Jeanine Pirro announced on April 24 that the probe was closed, prompting Tillis to declare he was ready to move forward. “With the assurances from the Department of Justice that the case is completely and fully settled, I am prepared to move on with the confirmation of Mr. Warsh,” Tillis said. Warsh needs a simple majority to be confirmed, and Republicans hold 53 seats. Potential bipartisan support may come from Senator John Fetterman (D‑PA), who has indicated he plans to vote in favor.
In an unusual twist, Powell announced after the April 29 rate decision that he would remain on the Fed’s Board of Governors “for a period of time to be determined” even after stepping down as chair. His board term runs through January 2028, and he pledged to keep a low profile, stating, “There’s only ever one chair of the Federal Reserve Board. When Kevin Warsh is confirmed and sworn in, he will be that chair.” The decision breaks with tradition—most Fed chairs have left the central bank entirely when their tenure ended. This means the Board could include two former chairs once Warsh is sworn in.
Warsh, who served on the Fed Board from 2006 to 2011, has signaled a sharp departure from current policy. During his confirmation hearing, he pledged a “regime change” at the Fed, including ending forward guidance and retiring the dot plot. He argued that AI-driven productivity gains could help contain inflation, opening the door to preemptive interest rate cuts. “The president never asked me to predetermine, fix, or decide on any interest rate decision, nor would I ever do so,” Warsh told lawmakers. Markets are watching closely, as his confirmation could reshape U.S. monetary policy leadership ahead of the Fed’s next meeting on June 16–17.
