The Senate confirmed Kevin Warsh as the new chair of the Federal Reserve on Tuesday, replacing Jerome Powell. President Donald Trump nominated Warsh for the central bank's top job, marking a shift in leadership at a time of steady interest rates and ongoing debate over inflation.
The confirmation process
Lawmakers voted along party lines to approve Warsh's nomination. The vote came after weeks of hearings in which Warsh fielded questions about monetary policy and the Fed's independence. Supporters cited his background in finance and government service, while critics raised concerns about political pressure on the central bank.
Who is Kevin Warsh
Warsh takes over from Powell, who had led the Fed since 2018. Warsh's appointment gives Trump a direct influence over the nation's monetary policy. The new chair inherits an economy with low unemployment but stubbornly high prices for some goods. His first major test will come at the next Federal Open Market Committee meeting, where the board will decide on interest rates.
What happens next
Warsh will now oversee the Fed's dual mandate of maximum employment and stable prices. He is expected to outline his policy approach in a speech later this month. The transition comes as the central bank continues to shrink its balance sheet, a process Powell had set in motion.
