
Trump's Fed chair pick Kevin Warsh confirmed by US Senate
Trump's Fed chair pick Kevin Warsh confirmed by US Senate 15 minutes ago Share Save Add as preferred on GoogleArchie MitchellBusiness reporterBloomberg via Getty ImagesKevin Warsh has previously worked at the Federal...
$4,200-$4,600 — Gold (GC) Where to settle in June?
An important development from the financial markets: Trump's Fed chair pick Kevin Warsh confirmed by US Senate 15 minutes ago Share Save Add as preferred on GoogleArchie MitchellBusiness reporterBloomberg via Getty ImagesKevin Warsh has previously worked at the Federal Reserve and on Wall StreetDonald Trump's Federal Reserve chair has been confirmed by the US Senate in a vote that fell largely along party lines. Kevin Warsh won confirmation on Wednesday with 54 votes in favour and 45 against. He will succeed Jerome Powell, whose tenure featured multiple clashes with the US president over interest rates.
His term ends on Friday. Warsh's confirmation was the narrowest margin for the Senate approval of a Fed chair since the process was implemented in 1977. Only one Democrat, Pennsylvania Senator John Fetterman, voted in favour to confirm Warsh.
Economic Details
US inflation jumps to 3. 8% as energy costs surge from Iran warFrom Epstein to sock puppets: Key takeaways from Kevin Warsh's Fed confirmation hearingTrump nominates Federal Reserve critic Kevin Warsh to run US central bankWarsh is facing a difficult balancing act when he steps into the role, with President Trump having made clear he expects his pick to lower the Fed's interest rate at a time when the US-Israel war in Iran is driving up the cost of living. Usually, the central bank would seek to hold or raise interest rates when inflation is on the rise, to keep a lid on price increases.
Indeed, following Tuesday's inflation figures, which showed prices rising at 3. 8% annually in April, the fastest rate since May 2023, most economists now expect rates to be held until next year - with some even warning of a rise. The rise in inflation has been driven largely by surging energy costs facing consumers, with the closure of the Strait of Hormuz having caused oil prices to spike.
But it also showed food, housing and airfare costs are on the rise. Warsh will be under pressure from Trump to cut rates, which the president hopes will help the US economy. And he will be up against a similar fallout with the US president as his predecessor Powell, who now is the subject of a federal probe launched by the Trump administration.
Analyst Views
Trump frequently clashed with Powell, describing him as incompetent and the worst Fed chair in history for not cutting rates fast enough. During his confirmation hearing before the Senate Banking Committee, Warsh vowed he will not act as Trump's "sock puppet" and will fight to defend the central bank's independence. But the ranking Democrat on the committee, Senator Elizabeth Warren, warned Warsh is "uniquely ill-suited" for the role and has been put in place to do Trump's bidding.
Warsh on Tuesday was confirmed by the Senate to serve as a Fed governor, a prerequisite to sit as chair and a position he previously held from 2006 to 2011. He will take the place of current Fed governor Stephen Miran, currently the central bank's biggest supporter of cutting interest rates.
Financial markets are tracking the development closely as investors assess the likely impact.





