Kevin Warsh confirmed as new US Federal Reserve chair amid controversy

Senate confirms Trump pick Kevin Warsh as Federal Reserve chair in 54-45 vote amid growing independence concerns.Kevin Warsh has been confirmed by the United States Senate to be the chair of the Federal Reserve’s Board of Governors, succeeding Jerome Powell, whose term ends on Friday.On Wednesday, the Senate voted to confirm Warsh in a 54-45 vote with Senator John Fetterman of Pennsylvania, a Democrat, joining his Republican colleagues amid a contentious confirmation process.Recommended Stories list of 3 itemslist 1 of 3Sam Altman says Elon Musk wanted 90 percent of OpenAI in high-stakes triallist 2 of 3China’s Xi expected to press Trump on Taiwan, tariffs during summitlist 3 of 3Messi remains highest paid player in MLS with base salary of $28mend of listOn Tuesday, Warsh, 56, US President Donald Trump’s pick to succeed Powell, was confirmed for a 14-year term by the Senate to join the central bank’s Board of Governors also 51–45 vote with Fetterman voting with Republicans.Warsh’s swearing-in to both positions awaits final White House signatures on paperwork sent by the Senate.Independence concernsWarsh’s confirmation comes amid a slew of concerns about independence at the US central bank and rising inflation.In his confirmation hearing before the Senate Banking Committee late last month, he was accused of being a “sock puppet” for Trump by Senator Elizabeth Warren.Warsh, who previously served on the central bank’s Board of Governors from 2006 to 2011, was in favour of rate hikes in 2024 when Joe Biden was US president, but shifted his opinion when Trump came into office, advocating for rate cuts and mirroring Trump’s calls for more aggressive cuts.In the last year, the Trump administration has pushed for more control over the central bank. Trump tried to fire Fed Governor Lisa Cook, a Biden appointee, amid allegations of mortgage fraud, and called for a Department of Justice (DOJ) investigation into Powell’s management of a building renovation project that a federal judge ruled was a pretext for pressuring Powell to cut rates or resign.