Warsh will serve four-year term as chair, taking over amid rising inflation and pressure from Trump to lower rates
The US Senate confirmed Kevin Warsh as chair of the Federal Reserve, one of the most powerful roles in the federal government that holds enormous sway over the economy.
The 54-45 Senate vote on Wednesday was split along party lines, with the exception of Democratic senator John Fetterman from Pennsylvania, who joined the Republican majority. Warsh was confirmed for a four-year term as chair and a 14-year appointment on the Fed’s rate-setting board.
Warsh will officially step into the role on 14 May, when the term of outgoing Fed chair Jerome Powell ends. He is taking over leadership of the Fed at a time when the central bank faces immense pressure from the Trump administration to lower rates, even as inflation climbs and war in the Middle East continues.
The Fed sets interest rates, which determines the cost of borrowing money. Higher interest rates typically cool spending and prices, at the risk of higher unemployment. Lower interest rates can boost the economy but also raise prices.
