The Senate confirmed Kevin Warsh to the Federal Reserve Board of Governors on Tuesday, moving President Donald Trump’s pick one step closer to becoming the next Fed chair.
Lawmakers approved Wash on a 51-45 vote. Sen. John Fetterman (D-Pa.) was the only Democrat to support the nomination.
Warsh must still win a separate vote in the Senate to become Fed chairman, which is expected to take place on Wednesday. The term of directors is 14 years and the term of the chairman is 4 years.
If confirmed as chairman, Warsh, 56, would succeed Jerome Powell, whose eight-year term leading the Fed ends on Friday. However, Powell said he plans to remain on the board until the federal investigation into the renovation of the Fed headquarters is concluded.
Warsh takes office as policymakers face a new wave of inflation concerns from the war in Iran and rising energy prices. Investors are also watching for signs of how the Fed might handle 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 show that Wash holds investments through venture funds and private entities in blockchain and digital asset companies related to decentralized finance, crypto payments and tokenized networks.
These assets include exposure to companies related to Bitcoin infrastructure, layer 1 and layer 2 blockchain networks, and prediction markets. Wash promised to divest most of the investment if confirmed.
His previous investments show he is familiar with the cryptocurrency market as the Federal Reserve considers stablecoin regulation, bank cryptocurrency custody rules and research into digital payment systems.
