Kevin Warsh was approved by the Senate this week to become the next Federal Reserve chair, giving Trump his chosen replacement for Jerome Powell at a moment when five years of above-target inflation has been compounded by an energy price surge tied to the Iran conflict.
The vote was largely along party lines, according to the Los Angeles Times. Senate Majority Leader John Thune praised Warsh on the floor before the vote, saying the country needs a Fed chair who can "appreciate the microeconomy: and that's the hardworking Americans, their jobs and their livelihoods," according to the Times.
The road to confirmation hit an obstacle when Sen. Thom Tillis, a Republican from North Carolina, announced he would not back Warsh so long as the Justice Department's investigation of Powell remained open. That probe was closed in April, removing the final barrier to a Senate floor vote, according to ABC News.
At his confirmation hearing, Warsh pledged that the central bank would remain independent. "Monetary policy independence is essential," he told the Senate Banking Committee. "I am committed to ensuring that the conduct of monetary policy remains strictly independent," according to CBS News.
Warsh also denied that Trump had sought to dictate rate decisions. "The president never once asked me to commit to any particular interest rate decision, period," he said at the hearing. "I will be an independent actor if confirmed as chair of the Federal Reserve," according to the Times.
