Jill On Money: Warsh named as Fed chair Should you care?

"He was a contender for Fed Chair in 2017, but then-President Trump named Powell instead. Recently, Warsh has shifted positions, arguing that interest rates are too high. He also believes that government spending is the root of inflation and that productivity advances from artificial intelligence will push down inflation over time. He supports Trump's policies on tariffs and deregulation as a means to boost the economy and has criticized Powell's handling of the Fed building renovation."

"Warsh must be confirmed by the Senate, which may prove difficult. Republican Senator Thom Tillis said that he won't vote to confirm Warsh (or any Fed Chair) until the Department of Justice drops its investigation of Powell over the Fed's renovation project. After receiving a subpoena, Powell said that the threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President."

Kevin Warsh has been nominated to succeed Jerome Powell as Federal Reserve Chair. He served as a Fed governor during the 2006–2011 financial crisis and resigned early amid policy disagreements, historically favoring higher interest rates. Recently he shifted, arguing interest rates are too high and blaming government spending for inflation while predicting AI-driven productivity will lower inflation. He supports tariffs and deregulation and criticized Powell over the Fed renovation. Senate confirmation may be difficult because Senator Thom Tillis refuses to vote until the Justice Department drops its probe. Even if confirmed, Warsh cannot unilaterally change interest rates because the FOMC's twelve voting members decide monetary policy by majority vote.

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