Trump’s Pick to Replace Fed Chair Powell Clears Key Senate Hurdle

President Donald Trump secured a major economic and political victory Tuesday as the Senate confirmed Kevin Warsh to the Federal Reserve Board of Governors, placing one of Trump’s preferred economic allies in a powerful position inside America’s central banking system.

The Senate voted 51-45 to approve Warsh for a 14-year term on the Federal Reserve’s seven-member governing board, marking a significant step toward a potential larger shakeup at the Fed later this week.

Lawmakers are still expected to hold a separate vote on whether Warsh will officially replace outgoing Federal Reserve Chair Jerome Powell, whose term as chair expires Friday.

The confirmation represents another major chapter in President Trump’s long-running clash with Powell over interest rates, inflation policy, and the direction of the U.S. economy.

Throughout both his first and second terms, President Trump repeatedly criticized Powell for refusing to aggressively cut interest rates, arguing the Federal Reserve was unnecessarily restricting economic growth and weakening American competitiveness.

Trump at times publicly referred to Powell as a “moron” and a “stubborn mule” while urging the Fed to adopt more pro-growth monetary policies.

Warsh’s confirmation now gives the administration a stronger foothold inside the Federal Reserve as President Trump seeks to reshape the institution with officials more aligned with his broader economic vision.

At 55 years old, Warsh is no stranger to the Federal Reserve system.

A graduate of Stanford University and Harvard Law School, Warsh previously served as a Federal Reserve governor from 2006 through 2011, including during the height of the global financial crisis.

Since leaving the Fed, Warsh has worked at Stanford’s Hoover Institution and advised billionaire investor Stanley Druckenmiller.

Supporters of President Trump increasingly rallied around Warsh as a steady but reform-minded candidate capable of steering the Federal Reserve in a more growth-oriented direction while still maintaining institutional credibility.

Warsh will fill the board seat previously occupied by Stephen Miran, a Trump economic adviser who joined the Fed last year after an early resignation created a vacancy.

Miran’s official term expired in January, though he remained on the board until his replacement was confirmed.

During his tenure, Miran became one of the strongest advocates for lower interest rates inside the Federal Open Market Committee.

He reportedly dissented from every Fed rate decision this year after officials chose to leave rates unchanged, arguing instead for additional cuts.

Miran also pushed for deeper reductions during the Federal Reserve’s final meetings in 2025.

Warsh himself has also criticized several aspects of the Federal Reserve in recent years, including the size of the central bank’s balance sheet, its communication strategies, and portions of its regulatory framework.

Although historically viewed as more hawkish on inflation, Warsh has recently signaled openness toward cutting rates under certain economic conditions.

Still, during his confirmation hearing, Warsh sought to reassure senators that he would not function as a political operative for the White House despite his alignment with many of President Trump’s economic goals.

“He never asked me to predetermine, fix or decide on any interest rate decision, nor would I ever do so,” Warsh told senators last month.

“I will be an independent actor if confirmed as chair of the Federal Reserve,” he added.

The confirmation battle unfolded amid increasing controversy surrounding Jerome Powell, whose final months as Fed chair have reportedly been overshadowed by an ongoing criminal investigation that has intensified uncertainty surrounding the institution.

Warsh’s newly confirmed term on the Federal Reserve Board extends until 2040, potentially allowing President Trump’s nominee to shape American monetary policy for well over a decade.

Meanwhile, President Trump also reignited discussion surrounding the nation’s gold reserves during a recent interview with Full Measure with Sharyl Attkisson.

The President said he remains interested in personally inspecting Fort Knox amid growing public curiosity surrounding the country’s gold holdings, currently valued at nearly $700 billion.

“We wanted to go and knock on the door of Fort Knox — a very thick door — and to see whether or not we have any gold in there,” Trump said during the interview.

The comments come after renewed public scrutiny last year surrounding security and transparency at the heavily protected bullion depository.