Senate confirms Kevin Warsh as next chair of the Federal Reserve

"Warsh was confirmed on a 54-45 vote, mostly along party lines. He has 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.""

"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. He has 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."

"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."

"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. He has vowed to keep a low profile and not try to overshadow Warsh. But Powell will continue to have a vote on the 12-member committee that sets interest rates."

Kevin Warsh won Senate confirmation to lead the Federal Reserve, replacing Jerome Powell as chair. The vote was 54-45, largely along party lines. Warsh signaled there is room to lower interest rates, while promising to use his own judgment and not take orders from the White House. He denied accusations that he would act as a political proxy. Powell’s term ends on Friday, though he will remain on the Fed’s governing board longer than usual. Powell plans to protect the institution from political pressure and keep a low profile while still voting on the rate-setting committee. Some committee members are concerned about cutting rates while inflation remains above the 2% target.

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