Kevin Warsh is the new Chair of the Federal Reserve!
Washington, May 13 (EFE).-
Economist Kevin Warsh became the new Chairman of the United States Federal Reserve on Wednesday after the Senate approved his nomination to lead the central bank of the world’s largest economy with a vote of 54 to 45.
Party discipline held tight, with the sole exception of Democratic Senator John Fetterman of Pennsylvania, who voted in favor of Warsh’s nomination.
The 53-year-old economist becomes the 17th chair of the Fed, succeeding Jerome Powell, who had held the post since 2018 after also being nominated by Trump during his first term (2016-2021).
However, after his return to the White House in 2025, Trump launched a campaign against Powell, arguing that the Fed was keeping interest rates too high.
By nominating Warsh in January to pilot US monetary policy, Trump has expressed his conviction that the former financier with extensive Wall Street experience will implement a more expansionary monetary policy.
Nevertheless, analysts find it unlikely that the Fed will immediately opt for monetary easing at a time when year-over-year inflation in the US is approaching 4%, fueled by the war with Iran and the closure of the Strait of Hormuz.
The new Federal Reserve chair has worked for financial giants like Morgan Stanley and previously served as a Federal Reserve Governor during the 2008 financial crisis, where he acted as a bridge between the central bank and Wall Street.
Warsh was initially passed over by Trump himself in 2017 when the New York magnate ultimately chose Powell to replace then-Fed Chair Janet Yellen.
A graduate of Stanford and Harvard Law with postgraduate studies at MIT, Warsh began his career at Morgan Stanley, rising to Executive Director of Mergers and Acquisitions.
He transitioned to public service under George W. Bush (2001-2009) as special assistant for economic policy before serving his initial term on the Fed’s Board of Governors from 2006 to 2011, where he gained a reputation for fiscal discipline.
Despite Trump’s public demands for lower rates, Warsh has historically been identified as an inflation “hawk.” During his confirmation hearings, he signaled a commitment to strict price controls and criticized the previous administration’s handling of the post-pandemic economy.
Warsh has also advocated for a “back-to-basics” Fed, arguing the central bank should avoid non-monetary issues like climate change and social policy.
Powell, who has been under pressure from the White House since 2025, has, in a break from tradition, decided to remain a member of the Board of Governors after stepping down as Chair on Friday.
The soon to be former chair stated he would remain as a Governor at least until the internal investigation into him, carried out by the Fed itself at Trump’s request, “concludes definitively and transparently.”
The Trump Administration had accused Powell of embezzling funds for the renovation of the Fed’s Washington headquarters, an indictment that was withdrawn after a federal judge deemed it politically motivated and a Republican senator threatened not to support Warsh’s appointment if the Justice Department did not drop the case. EFE asb/dmv/dgp
