The US Senate has confirmed Kevin Warsh to become the 17th chairman of the Federal Reserve.
Warsh was confirmed in a 54-45 vote along party lines, with Sen. John Fetterman of Pennsylvania as the sole Democrat approving the nomination. Warsh’s term will begin on May 15 following the expiration of Jerome Powell’s tenure as the central bank’s chairman. Powell is remaining on the Fed’s board of governors, though he vowed to keep “a low profile” and not interfere with Warsh’s leadership.
Mortgage Bankers Association President and CEO Bob Broeksmit issued a congratulatory statement immediately after Warsh was confirmed.
“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,” Broeksmit said. 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.”
A far-less congratulatory message was put forth on X by Sen. Elizabeth Warren (D-MA), the Ranking Member of the Senate Banking Committee.
“Trump’s economy is a mess,” Warren wrote. “Instead of fixing it, he’s trying to take over the Fed — and install his sock puppet Kevin Warsh to run it.”
Photo via Hoover Institution
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