Kevin Warsh, a longtime Republican economic adviser and former Federal Reserve governor, has been confirmed as the next chair of the US Federal Reserve after a closely fought Senate vote.
President Donald Trump selected Warsh to replace Jerome Powell following years of public disagreements with the outgoing Fed chief over interest rates and monetary policy.The Senate approved Warsh in a 54-45 vote, largely along party lines, with Democratic Senator John Fetterman joining Republicans in backing the nomination.
Trump has repeatedly accused Powell of keeping borrowing costs too high and slowing economic growth, while demanding aggressive interest rate cuts to support the economy.Warsh now takes charge of the world’s most influential central bank at a difficult moment.
Inflation remains above the Fed’s 2% target, while rising energy prices linked to the Iran conflict have added fresh pressure to the US economy.
Policymakers inside the Fed are divided over whether rates should stay elevated to control inflation or fall to support growth.Although Warsh built his early reputation as an inflation hawk, he has recently moved closer to Trump’s economic outlook.
