Share to ClassroomSenate Confirms Warsh as New Fed Leader
The US Senate has confirmed Kevin Warsh as the new chair of the Federal Reserve, the country's central bank. It decides interest rates, which affect home loans and businesses. The Senate voted 54 to 45 on Wednesday, mostly along party lines. Warsh will replace Jerome Powell on Friday. In an unusual move, Powell will not leave the Fed. He will keep his seat on the governing board and his vote on interest rates.
President Donald Trump nominated Warsh after months of public attacks on Powell. Trump often said Powell was not doing enough to cut interest rates. The confirmation was delayed when the Department of Justice started a criminal investigation into the Fed. Senator Thom Tillis blocked the vote in protest. He agreed to allow the vote only after the investigation was dropped. Warsh told senators he might lower interest rates but promised to make independent decisions.
Warsh starts his job at a hard time. The cost of living in the US rose 3.8% in the past year. This is the biggest yearly increase in almost three years. Food, housing, and plane tickets are all more expensive. Prices have also risen because the war with Iran pushed oil and gasoline costs higher. Warsh wants to change how the government measures inflation.
