The US Senate approves the appointment of Kevin Warsh as Chairman of the Federal Reserve

The US Senate on Wednesday approved the appointment of Kevin Warsh as Chairman of the Federal Reserve, making the 56-year-old lawyer and banker head of the institution responsible for determining monetary policy at a time of increasing inflation, which may make it difficult to lower interest rates as President Donald Trump demands.

Yesterday, Tuesday, the Senate, controlled by Republicans, approved Warsh’s appointment to a 14-year term on the seven-member Board of Governors of the US Central Bank.

The swearing-in of both positions awaits final signatures from the White House on papers sent by the Senate.

Warsh will take over the leadership reins from Federal Reserve Chairman Jerome Powell, whose term ends on Friday. But he will remain a member of the Central Bank’s Board of Governors. Stephen Meiran, a member of the Federal Reserve Board of Governors, who is currently the largest supporter of lowering interest rates at the central bank, will leave his seat on the board to make room for Warsh.

Warsh is expected to chair the next meeting of the Federal Reserve on June 16-17, joining the central bank, where policymakers are engaged in a heated debate regarding the direction of interest rates.

Members of the US Central Bank called for the bank to consider raising interest rates, out of concern that inflation is expanding even beyond the impact of the tariffs imposed by the Trump administration and the sharp rise in oil prices due to the war with Iran.