The U.S. Senate has confirmed pro-crypto Kevin Warsh as the next Federal Reserve chair, replacing Jerome Powell. This comes just a day after they confirmed him as a member of the Board of Governors. Warsh’s confirmation also comes as the U.S. House seeks to remove the Fed’s dual mandate.
Senate Confirms Kevin Warsh as Next Fed Chair
The Senate has confirmed Kevin Warsh as the next Chairman of the Board of Governors of the Federal Reserve for a term of four years. The senators voted 54 to 45 in favor of confirming him as the next Fed chair.
As CoinGape reported, the Senate confirmed Kevin Warsh as a Fed governor yesterday, which cleared the way for his confirmation as the next Fed chair. He will replace Powell, whose term as the Fed chair ends on Friday, May 15.
However, Powell has revealed that he will make the unusual move of staying on as a Fed governor for the foreseeable future. Most Fed chairs have historically resigned from the board after their term as Fed chair ends.
Kevin Warsh’s confirmation comes at a time when the Fed’s independence is in question, with U.S. President Donald Trump pushing for lower interest rates. Powell had accused the Trump administration of carrying out a criminal investigation into him because the Fed refused to lower rates in line with the president’s preference.
Meanwhile, the administration is currently in court against Fed Governor Lisa Cook as President Trump attempted to remove her over allegations of mortgage fraud. Notably, Warsh has vowed to protect the Fed’s independence, stating that he will not be the president’s ‘sock puppet.’
Kevin Warsh’s confirmation also comes as the market continues to price in the Fed holding rates steady throughout this year following the latest inflation data. As CoinGape reported, U.S. PPI inflation rose by 6% in April, its highest level since January 2026.
U.S. House Moves To Scrap Fed’s Dual Mandate
The U.S. House Republicans are moving to scrap the Fed’s dual mandate of inflation and employment. The House Financial Services Committee marked up a bill that will mandate the Kevin Warsh and the Fed to focus solely on inflation.
This could force the Fed to adopt a more hawkish stance, which is bearish for crypto prices. It is worth noting that the Fed lowered rates on three occasions last year, simply due to concerns that the labor market was weakening.
However, inflation appears to be the priority at the moment, with the Fed warning that inflation is elevated. There is also the possibility that the Fed may hike rates this year as the U.S.-Iran war pressures energy prices.
