The US Senate confirmed Kevin Warsh to head the Fed, where he will replace Jerome Powell. Trump’s nominee is expected to manage monetary policy at a time of political pressure on rates.
- The United States Senate has confirmed Kevin Warsh as head of the Federal Reserve System.
- Kevin Warsh has been nominated by President Donald Trump to replace Jerome Powell.
- Jerome Powell will step down as head of the US Federal Reserve on May 15.
On Wednesday, the US Senate confirmed Kevin Warsh as head of the US Central Bank (Fed). The agencies AP and AFP reported about it, writes TASR.
Warsh, who was nominated for the post by President Donald Trump, will replace the current chairman of the Federal Reserve System, Jerome Powell. His term ends on May 15. The Senate approved Warsh’s appointment by a vote of 54 to 45.
Trump’s criticism of the Fed
Powell has repeatedly been the target of Trump’s attacks over the Fed’s interest rate decisions. The head of the White House called for their reduction in order to stimulate the economy. The central bank, which is legally independent, has cut rates in several steps since Trump’s reinstatement in January last year, but the president says it’s not enough.
Former Fed Board member Kevin Warsh said at an April hearing before the Senate Banking Committee that monetary policy must remain independent, but the Fed should stick to its mandate.
Warsh’s response to concerns
Doubts about whether he can withstand possible pressure from Trump’s side are unfounded by Warsh. According to him, the fact that elected officials, including the head of state, express their views on interest rates does not threaten the independence of the central bank.
