Kevin Warsh takes over a Fed divided against itself |
Kevin Warsh takes over a Fed divided against itself
Warsh risks getting caught between a volatile president expecting interest rate cuts and his responsibility to keep monetary policy insulated from politics
Kevin Warsh, chairman of the US Federal Reserve nominee for US President Donald Trump, is sworn in during a Senate Banking, Housing, and Urban Affairs Committee confirmation hearing on April 21, 2026 in Washington, DC. (Chen Mengtong/China News Service/VCG via Getty Images)
When Jerome Powell became chair of the Federal Reserve in 2018, the U.S. economy was chugging along at 3% annual growth powered by a robust labor market. A consensus had formed among Fed policymakers at the time in favor of gradually raising interest rates to keep growth in check.
Powell's successor won't won't enjoy the same luxuries.
Kevin Warsh, a former central bank governor turned staunch Fed critic, is on track to succeed Powell as the next Federal Reserve chair. The Senate voted Tuesday to confirm Warsh for a 14-year term on the Fed's Board of Governors, with a separate Fed vote as soon as Wednesday expected to formally make........