54 votes against 45. The US Senate confirmed on Wednesday the nomination of Donald Trump’s candidate, Kevin Warsh, to head the powerful US central bank, the Federal Reserve (Fed).
Kevin Warsh only needs to take the oath before officially assuming his duties for a four-year term at the helm of this institution that sets US interest rates and influences a large part of the global economy.
Most Democratic opposition lawmakers voted against the former central banker’s nomination. They doubt he will be able to resist Donald Trump’s pressure for lower interest rates to boost the US economy. The president dismisses the current inflation fever, which the Federal Reserve is supposed to contain.
“Americans deserve to know clearly whether Mr. Warsh is determined to defend the Federal Reserve in this period of unprecedented attacks and political pressure from the White House,” said Democratic Senator Chris Van Hollen before the vote. “I hope he will act independently and make decisions based on facts and evidence, even when these decisions go against the president’s wishes,” added the Maryland lawmaker.
Since his return to the White House in January 2025, Donald Trump has been increasing pressure on the Fed, trying to oust outgoing chairman Jerome Powell and Governor Lisa Cook.
The US president had already considered appointing the 56-year-old man at the head of the monetary institution since 2018, during his first term in the White House. He had ultimately preferred Jerome Powell, who was later renewed under Democrat Joe Biden and whose presidency ends on Friday. Many observers believe Kevin Warsh faces the same fate as his predecessor, constantly insulted by Donald Trump if he does not lower interest rates.
However, while the Fed chair is a very influential voice, his vote does not carry more weight than the other eleven people who vote on the US monetary policy. Most are currently focused on inflation, which is rapidly deviating from the institution’s target (2%) due to the energy shock caused by the Middle East war. Consumer prices rose in April at a pace not seen in almost three years (+3.8% year-on-year).
After his eight-year term, Jerome Powell will remain at the Fed as he will join the board of governors. The institution serves as a form of protection for someone whom Donald Trump has targeted.
