BREAKING: US Senate Confirms Kevin Warsh as Fed Chair

The US Senate has confirmed Kevin Warsh, President Donald Trump’s nominee, as the new chairman of the Federal Reserve (FED).

In today’s vote, Warsh was confirmed by a 54-45 vote in the Senate, thus poised to replace Jerome H. Powell, whose term ends on May 15. Warsh’s appointment comes at a time when the US economy is facing uncertainties and debates about the Fed’s political independence are intensifying. The Trump administration had harshly criticized Powell in recent months, arguing that the Fed had not been aggressive enough in cutting interest rates.

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In the Senate vote, almost all Democrats voted against Warsh. Opponents expressed concerns about whether Warsh would be able to protect the Fed’s traditional political independence. Since returning to the White House, Trump has increased pressure on the Fed, frequently targeting Powell and publicly criticizing his interest rate policies. Throughout the process, legal disputes surrounding Federal Reserve Board member Lisa D. Cook have also been in the spotlight. The Trump administration attempted to remove Cook from her position due to allegations of mortgage fraud, and the matter was subsequently taken to the US Supreme Court. The court is expected to issue a ruling by July.

On the other hand, the Trump administration had also supported the Justice Department’s investigation into Powell’s management of the Fed headquarters renovation. This investigation was at one point seen as one of the biggest obstacles to Warsh’s confirmation process. Republican Senator Thom Tillis had stated that he would not support any Fed nominee unless the legal pressure on Powell was removed.

*This is not investment advice.