Senate Confirms Kevin Warsh to Lead the Fed as Independence Concerns Grow

Overview

• Kevin Warsh won Senate approval to replace Jerome Powell as chair of the U.S. Federal Reserve.
• He outlined a “regime change” that favors clear rules, fewer market rescues, and a tighter focus on inflation.
• The transition follows a Justice Department probe opened in January into whether Powell misled Congress about headquarters renovation costs.
• President Trump’s insults and threats to fire Powell raised fresh worries about political pressure on the central bank.
• Inflation lifted by higher gasoline prices during a conflict involving Iran now sets the first test for Warsh’s rate calls and for borrowers facing pricier credit.