Kevin Warsh confirmed to US Federal Reserve board in close Senate vote

John Fetterman of Pennsylvania, a Democrat, joins Republicans to advance Warsh’s confirmation.Kevin Warsh has been confirmed by the United States Senate to join the Federal Reserve’s Board of Governors ahead of an expected vote that will have US President Donald Trump’s appointee lead the central bank.The Senate vote on Tuesday passed 51-45, with a single Democrat, John Fetterman of Pennsylvania, casting his vote with the Republican majority to confirm Warsh for a 14-year term.Recommended Stories list of 4 itemslist 1 of 4Trump-Xi meeting: Could China, US form a ‘G2’?list 2 of 4Pentagon gives new $29bn Iran war price tag, downplays munitions concernslist 3 of 4Can China counter US sanctions with its trade power?list 4 of 4EBay rejects GameStop’s $56bn bid as ‘neither credible nor attractive’end of listThe next step in the Senate confirmation process would be to confirm him for a four-year term as the central bank’s chair. The vote is expected as soon as Wednesday, ahead of the end of current Chair Jerome Powell’s term, which ends on Friday.Independence in questionWarsh’s confirmation comes with questions about the central bank’s independence amid ongoing pressure by Trump to cut interest rates. In the Senate Banking Committee confirmation, Senator Elizabeth Warren accused Warsh, who served on the central bank’s Board of Governors in 2006-2011, of being a “sock puppet” for Trump, an assertion he has denied.In December, Trump said he would only appoint someone to lead the central bank if they agreed with him on interest rates.But the Fed chair has only so much control. He is one of 12 votes on the interest-rate-setting Federal Open Market Committee, and is one of 19 voices at the policy-setting table.Warsh’s confirmation comes amid efforts this past year by the Trump administration to exert control over the Fed, including attempting to fire Fed Governor Lisa Cook in a case now before the Supreme Court, and support for a Department of Justice (DOJ) investigation into Powell’s management of a building renovation that a federal judge ruled was a pretext for pressuring Powell to cut rates or resign.