US Senate Confirms Kevin Warsh as Federal Reserve Chair
The US Senate confirmed Kevin Warsh as the new Federal Reserve chair. The vote was 54 to 45.
It was the most divided confirmation vote ever for this role. Warsh is 56 years old.
He will replace Jerome Powell as head of the Federal Reserve. Only one Democrat voted for Warsh.
Warsh takes the job during a difficult time for the economy. Inflation recently hit 3.8% per year.
That is its highest level in nearly three years. Leaders warn that rising prices could make it harder for Trump to lower borrowing costs. Trump had often criticized Powell.
Klear Note — The Federal Reserve controls US interest rates and inflation. The chair is one of the most powerful economic positions. Senate confirmation votes are usually much more bipartisan.
Key Terms 4
- Federal Reserve The US central bank that controls interest rates and money supply
- Inflation When prices rise over time so money buys less
- Borrowing costs The interest people and businesses pay when they take out loans
- Confirmation vote A Senate vote to approve a person for an important government role