Trump Nominee Confirmed, US Senate Approves Warsh to Lead Federal Reserve
The US Senate today confirmed inflation 'hawk' Kevin Warsh to succeed Powell as the new Chairman of the US central bank, the Federal Reserve. Warsh will face multiple challenges upon taking office, including inflation, drawing significant market attention to his leadership and policy direction.
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- 📰 Published: May 14, 2026 at 06:13
- 🔍 Collected: May 14, 2026 at 06:32 (18 min after Published)
- 🤖 AI Analyzed: May 14, 2026 at 08:03 (1h 31m after Collected)
Central News Agency
(Washington, Central News Agency, May 13, comprehensive foreign news report) The US Federal Senate today confirmed inflation 'hawk' Kevin Warsh to succeed Powell as the new Chairman of the US central bank, the Federal Reserve (Fed). Warsh will face multiple challenges upon taking office, including inflation, drawing significant market attention to his leadership and policy direction.
Agence France-Presse reported that the Senate approved the appointment with 54 votes to 45, with Republicans narrowly ensuring the success of President Trump's nominee.
Kevin Warsh was previously known for his 'hawkish' stance against inflation and quantitative easing (QE), but in recent years, his position has shifted to align with President Trump's advocacy for interest rate cuts, which will pose an unprecedented challenge to the Fed's independence.
Warsh has pledged to bring 'institutional reforms' to the Fed and has criticized the institution for being overly politicized and too transparent in its communication of decisions.
However, with inflation still above the Fed's long-term target of 2% and rising energy prices driven by the US-Iran war, Warsh is unlikely to persuade the Fed's interest rate policy committee to immediately cut rates in the short term.
This could also lead him to face pressure from Trump, who has long publicly criticized Jerome Powell over interest rate policies.
David Wessel, a senior fellow at the Brookings Institution, said: "Warsh's biggest challenge may be dealing with President Trump."
● Economic Challenges
Warsh takes office at a time when the US economy is still reeling from successive shocks.
The pandemic once severely impacted the Fed's inflation target, with the Consumer Price Index (CPI) climbing to 9.1% in mid-2022. Although it has since receded, years of high prices continue to affect household spending.
US inflation rose to 3.8% year-on-year in April, a three-year high, partly due to oil price surges caused by the US and Israel's joint war against Iran.
Another task for the Fed is to maintain maximum employment. The US unemployment rate remained unchanged at 4.3% in April, meeting expectations, but the underlying structure of the labor market is changing.
Job growth has been weak, fluctuating between expansion and contraction in recent months, with new job opportunities mainly concentrated in the healthcare industry.
The full extent of labor market changes has not yet appeared, partly due to a significant decline in labor supply, mainly affected by Trump's immigrant expulsion policies and an aging population.
This leaves Fed policymakers in a dilemma: raise interest rates to curb inflation, or cut rates to stimulate the economy.
● Internal Divisions
Warsh's third challenge is the increasingly divided Federal Open Market Committee (FOMC).
As expected, the FOMC announced in April that interest rates would remain unchanged, but the most striking aspect was a rare divergence, with three members advocating for considering rate hikes to curb inflation.
Wessel stated: "The Fed is indeed divided, sometimes even politically, which is clearly different from the past." (Compiled by: Liu Wen-yu) 1150514
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(Washington, Central News Agency, May 13, comprehensive foreign news report) The US Federal Senate today confirmed inflation 'hawk' Kevin Warsh to succeed Powell as the new Chairman of the US central bank, the Federal Reserve (Fed). Warsh will face multiple challenges upon taking office, including inflation, drawing significant market attention to his leadership and policy direction.
Agence France-Presse reported that the Senate approved the appointment with 54 votes to 45, with Republicans narrowly ensuring the success of President Trump's nominee.
Kevin Warsh was previously known for his 'hawkish' stance against inflation and quantitative easing (QE), but in recent years, his position has shifted to align with President Trump's advocacy for interest rate cuts, which will pose an unprecedented challenge to the Fed's independence.
Warsh has pledged to bring 'institutional reforms' to the Fed and has criticized the institution for being overly politicized and too transparent in its communication of decisions.
However, with inflation still above the Fed's long-term target of 2% and rising energy prices driven by the US-Iran war, Warsh is unlikely to persuade the Fed's interest rate policy committee to immediately cut rates in the short term.
This could also lead him to face pressure from Trump, who has long publicly criticized Jerome Powell over interest rate policies.
David Wessel, a senior fellow at the Brookings Institution, said: "Warsh's biggest challenge may be dealing with President Trump."
● Economic Challenges
Warsh takes office at a time when the US economy is still reeling from successive shocks.
The pandemic once severely impacted the Fed's inflation target, with the Consumer Price Index (CPI) climbing to 9.1% in mid-2022. Although it has since receded, years of high prices continue to affect household spending.
US inflation rose to 3.8% year-on-year in April, a three-year high, partly due to oil price surges caused by the US and Israel's joint war against Iran.
Another task for the Fed is to maintain maximum employment. The US unemployment rate remained unchanged at 4.3% in April, meeting expectations, but the underlying structure of the labor market is changing.
Job growth has been weak, fluctuating between expansion and contraction in recent months, with new job opportunities mainly concentrated in the healthcare industry.
The full extent of labor market changes has not yet appeared, partly due to a significant decline in labor supply, mainly affected by Trump's immigrant expulsion policies and an aging population.
This leaves Fed policymakers in a dilemma: raise interest rates to curb inflation, or cut rates to stimulate the economy.
● Internal Divisions
Warsh's third challenge is the increasingly divided Federal Open Market Committee (FOMC).
As expected, the FOMC announced in April that interest rates would remain unchanged, but the most striking aspect was a rare divergence, with three members advocating for considering rate hikes to curb inflation.
Wessel stated: "The Fed is indeed divided, sometimes even politically, which is clearly different from the past." (Compiled by: Liu Wen-yu) 1150514
Stand with facts. Your every sponsorship is a power to protect press freedom.
Download Central News Agency's 'First-hand News' APP to instantly grasp the latest news.
Text, images, and videos on this website may not be reproduced, publicly broadcasted, publicly transmitted, or utilized without authorization.