Overview
- The Senate approved Michael Walsh to lead the Federal Reserve in a 54–45 vote, with most Democratic senators opposing the nomination.
- Fed Governor Milan said he will resign when Walsh is sworn in, creating the Board seat that the chair is legally required to hold.
- Walsh will take over once Jerome Powell’s term as chair ends, and Powell will remain on the Board as a governor.
- Walsh’s policy direction is uncertain because he argued for tighter money in 2006–2011 yet was chosen by a president pressing for rate cuts now.
- Inflation has picked up as oil prices rise during Middle East tensions, which could limit how quickly the new leadership considers cutting rates.