Warsh confirmed as Federal Reserve chair, as US central bank faces Trump assault

The US Senate on Wednesday confirmed Kevin Warsh as the new Federal Reserve chairman to lead a central bank whose independence is under attack and with inflation at a three-year high.The Senate voted 54 to 45 to in favour of Warsh, with Republicans holding a slim majority and ensuring US President Donald Trump’s nominee to replace Jerome Powell was confirmed.Once known as a monetary “hawk” against inflation, Warsh has shifted in line with Trump’s push for lower interest rates that has posed an unprecedented challenge to the Fed’s independence.The incoming Fed chair, confirmed for a four-year term, has promised to bring “regime change” at the bank, which he has criticised as too political and too open in communicating its decision-making.But with inflation still above the Fed’s long-term 2 per cent target – and rising over Trump’s Iran war – Warsh is unlikely to convince fellow members of the bank’s rate-setting committee to cut immediately.Jerome Powell departs following his final press conference as US Federal Reserve chair in Washington in April. Photo: ReutersThat could leave him open to attacks from Trump, who has relentlessly lashed out at Powell over rate decisions.