Trump’s nominee…the Senate approves the appointment of Kevin Warsh as Chairman of the Federal Reserve
The Council approved US Senate set Kevin Warsh is the new Chairman of the Federal Reserve, and the Senate voted 54 to 45 in favor of Warsh, securing the appointment of President Donald Trump to replace Jerome Powell.
After being known for his tough views on inflation, Warsh has adopted views that are in line with Trump’s efforts to lower interest rates.
The new Federal Reserve Chairman, for a four-year term, has promised a radical change in the bank, which he criticized for being too politicized and too open about revealing behind the scenes of the decision-making process.
But with inflation still above the long-term reserve target of 2%, and rising due to the war on Iran, Warsh is unlikely to convince Members of the bank’s interest rate-setting committee should lower them immediately.
This could make him vulnerable to criticism from the president, who has launched a relentless attack on Powell for not moving forward with interest rate cuts.
Recurring economic shocks
Warsh takes office at a time when the world’s largest economy is still suffering recurring economic shocks.
In April, the annual inflation rate reached a three-year high of 3.8%, driven in part by a rise in oil prices following the US-Israeli war on Iran.
Most Senate Democrats opposed confirmation of the appointment, citing Trump’s threats to the central bank’s independence.
But during a Senate hearing, Warsh said he would never be a puppet of the president.
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