The Senate confirms Kevin Warsh to the Fed’s board as he clears another hurdle to become chairman
The Senate on Tuesday confirmed Kevin Warsh to the Federal Reserve board, as President Trump’s nominee cleared another hurdle in his path to becoming the central bank’s next chairman.
In a 51-45 vote, the Senate also approved a motion to destroy, meaning there will be no more debate on Warsh’s nomination and a vote to confirm him as chairman will take place as soon as Wednesday evening.
Warsh – a 56-year-old financier who is expected to become the richest Fed chairman in history – has been under fire since the president nominated him in January to replace outgoing Chairman Jerome Powell.
Sen. Thom Tillis (R-NC) – who voted for Warsh’s confirmation – had previously vowed to block his confirmation until the Justice Department completes its criminal investigation into Powell over the excessive renovation of the Fed headquarters.
Follow The Post’s live coverage of President Trump and national politics for the latest news and analysis
The DOJ dismissed the investigation on April 24, clearing the way for Warsh. Trump, however, has signaled that he is open to further investigation into Powell, who he said is not lowering interest rates fast enough.
Sen. Elizabeth Warren (D-Mass.), the top Democrat on the Senate Banking Committee, also opposed Warsh’s nomination.
During a Senate hearing last month, Warren called Warsh a “sock puppet,” accusing him of misrepresenting his hawkish stance on “skipping his dream job” under Trump.
Warsh – married to billionaire Estee Lauder heiress Jane Lauder – has argued that artificial intelligence will spur productivity growth while keeping rates low, allowing the Fed to lower rates.
His argument is that AI makes workers more productive, so companies can outsource the same work with fewer workers – reducing inflation in the long run.
Economists have warned that massive AI-related spending on data center construction and energy needs could actually reignite inflation in the short term.
Warsh has also been a harsh critic of his former colleagues, comparing Fed officials to “coddled officials.”
During his Senate hearing last month, Warsh refused to verbally defend Powell or Fed Governor Lisa Cook from the federal criminal investigation.
He also appeared to criticize the Fed on climate change and racial inequality under the Biden administration, saying the central bank needs to “stick to its path.”
Warsh criticized the Fed for changing its inflation outlook for 2020, which he blamed for “inflation … we’re still living with.”
He also criticized Fed officials for being outspoken on the direction of interest rates when “we need central banks that are humble, smart, and can’t react,” adding that he wants more “family fighting” over policy direction at the central bank’s upcoming meetings.
