Kevin Warsh Confirmed as New Federal Reserve Chair

The US Senate has confirmed Kevin Warsh as the new chair of the Federal Reserve, clearing the way for him to take over the US central bank when Jerome Powell’s term ends on Friday. Warsh was also confirmed for a 14-year term as a member of the Fed’s Board of Governors.

The former Fed governor and finance official takes office at a time of rising inflationary pressure and uncertainty in financial markets. President Donald Trump has long called for interest rates to be cut, but rising oil prices following the outbreak of war with Iran have strengthened expectations that the Fed could raise rates sooner.

Warsh has signaled significant changes to the Fed’s operations. He wants to shrink the central bank’s balance sheet and strengthen coordination with the Treasury and the White House on economic policy.

Analysts warn that markets do not yet know whether Warsh will push for a tougher fight against inflation or lean toward the White House’s demand for lower interest rates. Investors will be watching his first steps in office closely.

(reuters, lud)