Worš’s candidacy for the head of the Fed was supported by 54 votes.
Kevin Warsh (Photo: EPA/WILL OLIVER)
The US Senate has approved Kevin Warsh as the new chairman of the Federal Reserve. He will replace Jerome Powell amid controversy over the independence of the US central bank and rising inflation in the US. This was reported by reports Financial Times.
WHY THIS IS IMPORTANT
The Federal Reserve determines US monetary policy, which affects the global economy, the dollar’s exchange rate, inflation, and global financial markets. The new appointment may also affect the crypto market – an overview and trends from Binance Research, as well as the top 10 cryptocurrencies for April. Read on LIGA.net
The Senate supported Worsh’s candidacy with 54 votes in favor and 45 against. He was nominated by the president.Donald Trump.
56-year-old Powell is likely to take over as Fed chairman as early as next week. He will have to work in the face of a new surge in inflation: data released over the past two days indicate a sharp rise in prices.
After the Senate vote, Trump still has to officially approve Warsha’s four-year term.
Worsh pledged to sell a significant portion of his assets, worth over $130 million, before taking office.
The Financial Times notes that the approval process has been one of the most contentious in recent decades due to Trump’s pressure on the Fed. The US President has repeatedly demanded a sharp cut in rates and publicly criticized Jerome Powell for refusing to do so.
Inflation is on the rise again in the U.S., and within the Fed itself, there are growing disagreements over future interest rate policy.
On January 30, the US President Donald Trump nominated Kevin Warsh for the position of chairman of the Federal Reserve. The next day, prices for metals fell to a record low. Gold fell by 12% and traded around $4786.
On March 19, Federal Reserve Chairman Jerome Powell hinted, that he is prepared to stay at the Fed longer than he had planned.