Senate confirms Kevin Warsh as next chair of the Federal Reserve

Kevin Warsh won Senate approval to be the next chairman of the Federal Reserve. He takes over at a time when soaring gasoline prices have put upward pressure on inflation. Andrew Harnik/Getty Images North America

Andrew Harnik/Getty Images North America

President Trump's pick to lead the Federal Reserve won Senate confirmation on Wednesday, just in time to officially take over as the leader of the central bank this week.

Trump is hoping Kevin Warsh can lead the Fed into much lower interest rates — but the president could be frustrated by persistent inflation.

Warsh was confirmed on a 54-45 vote, mostly along party lines. Hehas argued there's room to lower rates, but he also promised to use his own judgment in setting monetary policy — and not to take orders from the White House. Warsh denied charges from Sen. Elizabeth Warren, D-Mass., that he would be Trump's "sock puppet."

Warsh will replace Jerome Powell, who has led the Fed since 2018. Although Trump appointed Powell to the job, he has relentlessly criticized the outgoing Fed chairman for not moving more aggressively to lower borrowing costs. Powell's term as chairman ends on Friday.

Warsh's confirmation as chair was delayed after President Trump waged a pressure campaign against the Fed, with the Justice Department even launching a criminal investigation of the central bank. But Sen. Thom Tillis, R-N.C., initially blocked a committee vote on the nomination to protest that probe, with the senator dropping his opposition only after a U.S. attorney agreed to drop the probe.

Powell will stay on

In a break with tradition, Powell will remain on the Fed's governing board for a period of time after stepping down as chairman. That's unusual since Fed chairs typically leave the central bank when their term as the head is done. But Powell is determined to safeguard the institution from political pressure.