The Senate confirmed former finance executive and former Federal Reserve Governor Kevin Warsh as the U.S. central bank’s new chair on May 13, elevating him to a role that will make him one of the most influential economic policymakers in the world.
The Senate voted 54-45 to confirm President Donald Trump’s nominee. In a similarly split vote, the Senate confirmed Warsh to a new 14-year term on the Fed’s Board of Governors the day prior. His confirmation comes amid concerns about the central bank’s independence, given Trump’s consistent browbeating of soon-to-be-former Fed chair Jerome Powell, as well as legal cases that have raised further questions about the institution’s autonomy from politics.
Warsh, who served on the Fed’s Board of Governors from 2006 to 2011, will rejoin the central bank at a time when Federal Open Market Committee members are somewhat divided on the best path forward for rates. Rising inflation stemming from the Iran war and a low-hire environment in the job market outside certain sectors like health care pose risks to both sides of the Fed’s mission – keeping prices stable and employment high.
More: What Kevin Warsh might face as Fed chair in an evolving economy
