The United States Senate has confirmed Kevin Warsh as chair of the Federal Reserve's Board of Governors, succeeding Jerome Powell, whose term ends Friday.

On Wednesday, the Senate voted 54-45 to confirm Warsh, with Senator John Fetterman of Pennsylvania, a Democrat, joining Republicans amid a contentious confirmation process.

On Tuesday, Warsh, 56, President Donald Trump's pick to replace Powell, was confirmed for a 14-year term to the central bank's Board of Governors in a 51-45 vote, with Fetterman again voting with Republicans.

Warsh's swearing-in awaits final White House signatures on paperwork sent by the Senate.

Warsh's confirmation comes amid concerns about the central bank's independence and rising inflation.

At his confirmation hearing last month, Senator Elizabeth Warren accused him of being a "sock puppet" for Trump.

Warsh, who served on the Fed's board from 2006 to 2011, favored rate hikes in 2024 under Biden but shifted to advocating for rate cuts after Trump took office.

The Trump administration has pushed for more control over the Fed, attempting to fire Governor Lisa Cook and calling for a DOJ investigation into Powell.

Warsh has called for "regime change" at the central bank, seeking a smaller balance sheet to allow for lower policy rates.

The Fed's next meeting, the first chaired by Warsh, is scheduled for June 16-17. CME FedWatch shows a 97% chance rates will remain unchanged.

This comes amid surging oil prices and a CPI report showing consumer prices rose 0.6% in April, with annual inflation at 3.8%.

Source: www.aljazeera.com