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Kevin Warsh is the new Federal Reserve Chair after a narrow Senate confirmation. The vote was tight and loud, but it got done. For conservatives who wanted a Fed that leans toward growth and common sense, this is a win. For those who liked the old ways, expect a fight — and maybe some unhelpful chest-beating from the usual suspects about “independence.”
Senate confirmation: a close vote with clear politics
The Senate confirmed Kevin Warsh by a 54–45 vote, with Senator John Fetterman the lone Democrat to back him. The roll call showed how partisan this fight was — most Republicans supported Warsh, most Democrats opposed. A few procedural hurdles had to be cleared first: Warsh was already confirmed to a Board seat, and a Justice Department decision to drop its criminal probe tied to the Fed’s renovation helped lift a hold from Senator Thom Tillis. U.S. Attorney Jeanine Pirro announced the DOJ choice, while Inspector General Michael E. Horowitz is still working on a separate review of the renovation project.
Warsh’s pitch: “regime change” — real reform or political theater?
Warsh campaigned on what he called “regime change” at the Fed: shrink the bloated balance sheet, dial back endless forward guidance, and rethink how the central bank mixes with fiscal players. He also told senators he would be “strictly independent” on interest rates. Conservatives ought to welcome someone willing to rethink the Fed’s reach and focus on price stability. But talk is cheap. Warsh has the chair’s bully pulpit, yes, but only one of 12 votes on the rate-setting committee. If he really wants lower rates and faster growth, he’ll have to build allies, not just tweet slogans.
Powell’s legacy and the awkward transition
Let’s be honest: Jerome H. Powell left the Fed in a mess. The renovation scandal attracted the kind of eye-rolling indignation usually reserved for Hollywood budgets. Powell says he will remain on the Board as a governor, which means the Fed could have its old boss still in the room while the new boss tries to steer the ship. That’s awkward and dangerous for reformers. The inspector-general review will matter politically and could fuel arguments about Fed accountability. Conservatives should cheer oversight, but they should also demand Warsh be allowed to lead without the petulant leftovers of the old guard undermining him.
Markets, inflation and what to watch next
The timing of this confirmation matters. Wholesale inflation has picked up again, and that reality makes quick rate cuts unlikely. Warsh can push for a smaller balance sheet and friendlier policy, but the next few Fed meetings — and incoming inflation numbers — will show whether his words mean anything. Watch the June FOMC meeting, Warsh’s opening speeches, and the inspector-general report. If Warsh can convert his “regime change” talk into real policy shifts, the economy may get a needed jolt. If not, Republicans who celebrated this win will have earned only a photo op.
