(The Center Square) — The U.S. Senate, in a 54-45 vote, confirmed Kevin Warsh, President Donald Trump's pick to lead the Federal Reserve on Wednesday.
The Senate voted closely along partisan lines, with Sen. John Fetterman, D-Penn., being the only Democrat to move along Warsh's nomination. All Republicans supported Warsh's nomination.
Warsh has drawn criticism from senators of both political parties over his ability to make interest rate decisions independent from Trump. Jerome Powell, the current leader of the central bank, will complete his term Thursday.
Powell and Trump have publicly feuded in the past over lowering interest rates. Powell has largely maintained interest rates over the past several years, despite recent pressure from Trump.
“The president never asked me to predetermine, commit, fix, decide on any interest rate decision in any of our discussions,” Warsh said during a Senate confirmation hearing in April.
Warsh has outlined a plan to change how the Federal Reserve sets its interest rates. He said he would shift away from analysis that focused on median outcomes, rather making changes based on small shifts in data.
“What’s the change of that 500,000,001 price because that’s inflation,” Warsh said. “I want to know what inflation is and I think there’s still some work to do.”
The U.S. conflict in Iran has driven inflation to its highest rate in four years. In April, inflation shot up to 3.8%, largely driven by a rise in energy prices due to blockades in the Strait of Hormuz.
Warsh will be coming to lead the central bank at a unique time in the institution's history, where leaders in Congress have questioned his loyalties.
"I'm committed to ensuring that the conduct of monetary policy remains strictly independent, equally committed to work with the administration and Congress on non-monetary matters that are part of the Fed's remit," Warsh said.
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