The US Senate confirmed former Federal Reserve official and financier Kevin Warsh for a 14-year term on the Federal Reserve Board of Governors.
According to Reuters, the Senate is now expected to expedite the confirmation process for Warsh’s four-year term as Fed Chairman. The vote could be completed by Wednesday, while current Fed Chairman Jerome Powell’s term ends on Friday.
It is believed that the debate over the political independence of the US Federal Reserve may intensify with Warsh’s appointment. While President Donald Trump has long pressured the Fed to cut interest rates, the administration’s various actions against Powell are also noteworthy. These include attempts to remove Fed Governor Lisa Cook and the Justice Department investigation into Powell’s handling of the Fed building renovation. Although the investigation was later closed, it has been reported that the chief prosecutor said it could be reopened.
It was stated that Powell plans to remain in office as a member of the FED after his term as chairman ends. Powell reportedly considers this decision important for the FED to be able to conduct its monetary policy independently of political pressure.
*This is not investment advice.
Leave a Reply
You must be logged in to post a comment.