Senate is set to confirm Trump pick Warsh as chairman of the Federal Reserve, following Powell

The U.S. Senate is expected to confirm Kevin Warsh as the next chairman of the Federal Reserve on Wednesday, marking a shift in leadership at the world’s most powerful central bank during a period of economic uncertainty. Warsh, a former Fed official, will succeed Jerome Powell, whose term as chairman ends later this year. His confirmation was delayed after Republican Sen. Thom Tillis of North Carolina threatened to block the nomination while the Justice Department investigated Powell, but the probe was dropped in April. Warsh’s appointment comes as inflation remains above the Fed’s 2% target for five consecutive years, now exacerbated by rising gas prices. The Fed’s policymaking committee is deeply divided, with last month’s meeting seeing the highest number of dissenting votes in over three decades. Despite personal attacks from former President Donald Trump and a Justice Department investigation into his actions, Powell plans to remain on the Fed’s board after his term ends, potentially creating a competing power structure within the institution. The Senate voted unanimously to approve Warsh’s nomination to the Fed’s Board of Governors on Tuesday, with Pennsylvania Sen. John Fetterman as the only Democrat supporting the confirmation. Warsh’s confirmation hearing highlighted concerns about whether he will prioritize economic data or political pressures, particularly from Trump, who has repeatedly called for lower interest rates to boost stock markets. In December, Trump stated he wanted a Fed chairman who would cut rates when markets rose, a stance contrary to traditional economic principles. White House National Economic Council Director Kevin Hassett expressed confidence in Warsh’s ability to lower interest rates over time, though he emphasized that decisions would be data-driven. Warsh’s confirmation could ease market tensions, but his leadership will be closely watched as the Fed navigates inflation, economic instability, and political interference from Trump, who has previously targeted Fed officials and threatened to undermine the central bank’s independence.