"The Senate vote on Tuesday passed 51-45, with a single Democrat, John Fetterman of Pennsylvania, casting his vote with the Republican majority to confirm Warsh for a 14-year term. The next step in the Senate confirmation process would be to confirm him for a four-year term as the central bank's chair. The vote is expected as soon as Wednesday, ahead of the end of current Chair Jerome Powell's term, which ends on Friday."
"Warsh's confirmation comes with questions about the central bank's independence amid ongoing pressure by Trump to cut interest rates. In the Senate Banking Committee confirmation, Senator Elizabeth Warren accused Warsh, who served on the central bank's Board of Governors in 2006-2011, of being a sock puppet for Trump, an assertion he has denied. In December, Trump said he would only appoint someone to lead the central bank if they agreed with him on interest rates."
"But the Fed chair has only so much control. He is one of 12 votes on the interest-rate-setting Federal Open Market Committee, and is one of 19 voices at the policy-setting table. Warsh's confirmation comes amid efforts this past year by the Trump administration to exert control over the Fed, including attempting to fire Fed Governor Lisa Cook in a case now before the Supreme Court, and support for a Department of Justice (DOJ) investigation into Powell's management of a building renovation that a federal judge ruled was a pretext for pressuring Powell to cut rates or resign."
"The DOJ dropped its investigation, but its lead prosecutor in Washington says she could reopen it. Powell plans to take the unusual step of staying on as governor after his term as chair ends "
Kevin Warsh was confirmed by the U.S. Senate to serve on the Federal Reserve Board of Governors for a 14-year term, passing 51-45 with Democrat John Fetterman joining Republicans. The next step is a separate confirmation for Warsh to lead the Federal Reserve as chair for a four-year term, expected as soon as Wednesday. The timing follows the end of Chair Jerome Powell’s term on Friday. Warsh’s confirmation raises questions about central bank independence due to pressure from President Donald Trump to cut interest rates. Senator Elizabeth Warren accused Warsh of acting as a Trump proxy, which Warsh denied. The confirmation comes alongside broader efforts to influence the Fed, including attempts involving Governor Lisa Cook and a DOJ investigation related to Powell’s management decisions.
Read at www.aljazeera.com
Unable to calculate read time
Collection
[
|
...
]