Kevin Warsh will be sworn in as the new Chairman of the Federal Reserve Board on May 22. He replaces Jerome Powell.
Warsh was confirmed on a 55-45 roll call vote on May 13. All Republicans and one Democrat, Sen. John Fetterman, D-Pa. voted in favor of the nomination. Sen. Kirsten Gillibrand, D-N.Y., did not vote.
Jerome Powell has announced his intention to continue to serve on the Fed, much to the consternation of President Donald Trump, who has expressed his opposition to Powell’s policy positions on interest rates. Trump has said he wants interest rates to be cut faster than Powell was willing to cut them.
The Fed named Powell chair pro tempore until Warsh is sworn in. “This temporary action to name the incumbent as chair pro tempore is consistent with past practice during similar transitions between chairs,” the Fed said.
Relatedly, Stephen Miran has resigned as a member of the Fed effective upon or shortly before the swearing in of Warsh, his successor. In his resignation letter, Miran emphasized the importance of “thinking critically” about inflation data, stating:
“While there’s always measurement error in inflation, a severe problem arises when those errors grow over time; the expansion of noise due to these errors has implied an effective reduction in the Federal Reserve’s inflation target. If the Federal Reserve doesn’t adjust for these errors, it will run unemployment higher than it has to, fighting fake rather than real inflation. I have argued forcefully against this dynamic.”
Powell’s term expires in January 2028 and Trump’s ability to fire him—if he wants to– is tied up in federal court. Federal law states that a Fed member may only be removed for cause.
Last year, Trump fired Democratic board member Lisa Cook, citing allegations of mortgage fraud as the basis. The Trump Administration argued that Cook made false statements on mortgage applications for a home in Michigan and a condominium in Georgia.
In September 2025, Judge Jia M. Cobb, with the federal district court for the District of Columbia, issued a preliminary injunction blocking the attempt to remove Cook.
Judge Cobb held that the Administration had not presented evidence of cause related to Cook’s conduct or job performance as a Fed Board member and allowed Cook to remain on the board.
Significantly Judge Cobb also held that the “for cause” removal provision applicable to Fed Board Members only applies to their behavior while they are a Board Member. With regard to the allegations of mortgage fraud, lawyers for Cook have asserted that reports confirm that Cook properly declared her Michigan home as her principal residence, and that, as part of her mortgage application, she described the property in Georgia as a vacation home.
A divided three judge panel of appeals court judges agreed with Judge Cobb and the administration filed an emergency application with the U.S. Supreme Court, seeking dismissal.
The Supreme Court has heard oral arguments in the case, but has not issued a decision.
Addressing the confirmation of Warsh, American Bankers Association President and CEO Rob Nichols stated:
“ABA congratulates Kevin Warsh on his Senate confirmation to serve as chair of the Federal Reserve Board. Chair Warsh will bring deep experience and a steady hand to this critical role, informed by his prior service on the Board during an extraordinarily challenging economic period. As someone who used to work alongside Chair Warsh, I have seen firsthand his strong understanding of monetary policy, financial markets and the essential role banks play in the economy. We look forward to working with him to further strengthen our financial system and spur economic growth. We also thank outgoing Chair Powell for his two terms leading the Federal Reserve and for his years of public service.”
Also addressing the confirmation of Warsh, Mortgage Bankers Association President and CEO Bob Broeksmit stated:
“We look forward to continued engagement on policies affecting the banking and housing finance systems and will continue advocating for a more balanced and risk-aligned approach to capital standards affecting mortgage lending and commercial real estate finance. This includes our recommendations on the Basel III re-proposal, which will include reducing the risk weight on mortgage servicing assets to 100% and eliminating their cap included in Tier 1 capital, reducing the risk weight to 50% on warehouse lending lines, and better calibrating capital requirements for commercial and multifamily real estate lending and community investment activities.”