Kevin Warsh Confirmed as Next Fed Chair

Kevin Warsh, US President Donald Trump's handpicked choice to succeed current chairman Jerome Powell, was approved by the Senate Banking Committee on Wednesday, with the full Senate vote expected as early as May 11th. Warsh appeared before the Senate Banking Committee on April 21st, asserting that he would be a "strictly independent" chairman and rejecting possible calls by Trump to cut interest rates. His confirmation is now all but assured after a Republican holdout dropped his block of the nomination. Democrats on the committee, including Elizabeth Warren, warned Warsh could become a political instrument of the White House. The Economist notes that despite his hawkish past, Warsh abandoned a lifetime of inflation hawkishness to secure the nomination. Powell's term as chair ends on May 15th, but he said he will remain on the Fed board as a governor — an unusual break with tradition. The real test for Warsh will be defending Fed independence as oil-driven inflation makes rate cuts politically attractive but economically dangerous
Sources: Al Jazeera, Washington Post, The Economist