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Senate Approval Installs Bitcoin-Friendly Successor to Jerome Powell
TL;DR
- Kevin Warsh was confirmed on May 13, 2026, as chairman of the Federal Reserve.
- Warsh replaces Jerome Powell amid rising inflation and pressure over interest rates.
- The new Fed chair has previously expressed more favorable views toward Bitcoin than Powell.
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Kevin Warsh was confirmed on May 13, 2026, as chairman of the Federal Reserve, replacing Jerome Powell after a Senate vote that installed a more crypto-receptive leader at the center of U.S. monetary policy during a period of elevated inflation and political pressure over interest rates.
The Senate confirmed Warsh by a 54-45 vote, with one senator not voting. Senate Daily Press recorded the confirmation at 2:47 p.m. after the roll call began around 1:58 p.m. Reuters described the vote as the most partisan confirmation for a Federal Reserve chair on record.
Warsh’s confirmation followed an earlier May 12 vote confirming him to the Federal Reserve Board of Governors by a 51-45 margin. Earlier reporting had indicated that a separate vote for the chairmanship was still expected before the final confirmation was completed on May 13.
Jerome Powell’s term as Fed chair was reported to expire on Friday, May 15. Powell intended to remain on the Federal Reserve Board of Governors until 2028.
President Donald Trump selected Warsh to lead the central bank after months of tension surrounding Powell and the administration’s push for lower interest rates. Warsh’s confirmation also came after a recently closed Department of Justice investigation into Powell, which had complicated support discussions around the nomination.
Warsh’s Bitcoin Comments Draw Attention
Warsh enters the role with a more crypto-friendly profile than Powell, although his views on the sector have been mixed.
Warsh previously criticized some crypto projects as fraudulent and worthless while also disclosing investments in crypto-native projects including Polymarket and Solana.
Warsh also said Bitcoin “does not make me nervous.” Another account of his remarks said he described Bitcoin as “the new gold for anyone under forty” and said the asset “does not concern him at all.”
Senator Cynthia Lummis, a Republican from Wyoming known for supporting digital assets, welcomed the confirmation and wrote on X that “American businesses and digital asset holders finally have a leader at the Fed who is ready to deliver it.”
Democratic Senator John Fetterman of Pennsylvania was identified as the only Democrat who voted in favor of Warsh’s confirmation.
Republicans praised Warsh’s market expertise and willingness to challenge existing policy direction, while critics argued he lacked the bipartisan support base Powell previously maintained.
Senator Elizabeth Warren described Warsh as a “sock puppet” installed to do the bidding of the White House. Senator Raphael Warnock criticized Warsh as “dismissive” during hearings and said he failed to answer key questions regarding Federal Reserve independence and oversight.
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Inflation Pressures Complicate the Policy Outlook
Warsh assumes leadership of the Federal Reserve while inflation indicators remain elevated and market expectations for rate cuts continue to weaken.
Consumer prices increased to 3.8% in April from 3.3% in March, marking the highest annual reading since mid-2023. Core PCE remained above 3%.
Producer prices rose 6% in April from a year earlier, representing the fastest pace since December 2022.
Financial markets were expecting no change to the Federal Reserve’s 3.5%-3.75% policy rate target this year, while a possible rate increase was being priced as soon as January.
Warsh is expected to chair the Federal Reserve’s next policy meeting on June 16-17, when officials are scheduled to release updated interest-rate projections. Earlier March projections anticipating one rate cut this year were increasingly viewed as outdated.
At least five of the Federal Reserve’s 19 policymakers had said by April that they wanted more hawkish guidance indicating a rate increase was becoming as likely as a rate cut.
Warsh argued that productivity gains driven by artificial intelligence could eventually reduce inflation pressures, supporting a possible future case for lower inflation alongside looser monetary conditions.
During his confirmation hearing, Warsh told senators he welcomed a “family fight” inside the Federal Reserve as policymakers debated the appropriate response to economic conditions.
Warsh also told senators he had made no promises to Trump regarding interest rates despite expectations that the White House favored lower borrowing costs.
FAQ
When was Kevin Warsh confirmed as Fed chair?
Warsh was confirmed on May 13, 2026.
What was the Senate vote result?
The Senate confirmed Warsh by a 54-45 vote with one senator not voting.
What has Warsh said about Bitcoin?
Warsh said Bitcoin “does not make me nervous.”
When will Warsh chair his first Fed meeting?
Warsh is expected to lead the June 16-17 Federal Reserve meeting.
This article has been refined and enhanced by ChatGPT.
