Trump’s Fed TAKEOVER—Powell Out, Warsh In

(DailyChive.com) – The Senate voted Monday to confirm Kevin Warsh to the Federal Reserve Board of Governors in a largely party-line decision that paves the way for President Trump to install his chosen ally as the next Fed Chair, marking a dramatic shift in leadership at America’s central bank.

Story Snapshot

Senate confirms Kevin Warsh as Fed Governor 51-45, with only one Democrat crossing party lines
Warsh positioned to replace Jerome Powell as Fed Chair in separate vote expected this week
Powell’s term ends Friday amid ongoing criminal probe, unprecedented situation for outgoing chair
Confirmation secures Warsh a 14-year term through 2040, giving Trump influence over monetary policy

Senate Approves Trump’s Fed Nominee

The U.S. Senate confirmed Kevin Warsh to a 14-year term on the Federal Reserve Board of Governors on May 12, 2026, by a vote of 51 to 45. Senator John Fetterman of Pennsylvania was the sole Democrat to break ranks and support Warsh, highlighting the partisan nature of this critical appointment. The confirmation follows a May 11 cloture vote that advanced the nomination 49-44, with Fetterman and Senator Chris Coons of Delaware voting to proceed. Warsh, who previously served as Fed Governor from 2006 to 2011 under President George W. Bush, now fills the vacancy left by Stephen Miran’s September 2025 confirmation.

Trump Reshapes Central Bank Leadership

President Trump nominated Warsh in late January 2026 via Truth Social, initiating a process to fundamentally reshape Federal Reserve leadership. The White House formally submitted nominations in March for both the Governor position and a separate four-year term as Fed Chair. Warsh testified before the Senate Banking Committee on April 21, where Democrats grilled him extensively on Federal Reserve independence and potential political influence. This marks Trump’s first major Fed appointment of his second term, and represents a clear effort to install an ally who shares his economic vision at the helm of the nation’s central bank.

Powell’s Unprecedented Exit Under Cloud of Investigation

Jerome Powell’s departure as Fed Chair occurs under extraordinary circumstances that raise serious questions about accountability within government institutions. Powell’s term ends Friday amid an ongoing criminal probe, the details of which remain undisclosed to the American people. In an unprecedented move, Powell plans to remain on the Board as a rank-and-file governor after his chair term expires, making him the first outgoing chair in over 75 years to linger in such capacity. This arrangement ensures some continuity during the transition but does little to address the cloud of uncertainty surrounding his criminal investigation, a situation that exemplifies the lack of transparency Americans have come to expect from Washington elites.

Warsh’s Background and Market Experience

Kevin Warsh brings significant credentials to the position, having served as Ben Bernanke’s key advisor during the 2008 financial crisis when he was appointed at age 35 as the youngest Fed Governor at that time. After leaving the Fed in 2011, he joined Stanford University’s Hoover Institution where he continued to advise on monetary policy matters. Trump previously considered Warsh for Fed Chair in 2017 but ultimately selected Powell. Warsh’s Wall Street experience and hawkish stance on inflation appeal to conservatives who believe the Federal Reserve has been too accommodative under recent leadership, contributing to the inflation that has devastated household budgets across America.

JUST IN: Senate Confirms Trump Nominee Kevin Warsh as Fed Governor, Clearing the Way to Replace Powell | The Gateway Pundit | by Cristina Laila https://t.co/feHv7CsxQ7

— Martha Washington (@2martha) May 12, 2026

The confirmation vote sets up an expected chair vote later this week that will likely pass along similar party lines, given Republican control of the Senate. Once confirmed as chair, Warsh will lead a Federal Reserve Board that includes a mix of Trump and Biden appointees, potentially creating tension over policy direction. Financial markets are already anticipating a shift toward tighter monetary policy, with Warsh’s known preference for higher interest rates to combat inflation. This appointment represents a victory for those who believe unelected bureaucrats at the Fed have operated with insufficient accountability to elected officials and the American people they serve.