Wash's nomination as Fed Chair passes Senate... expected to take office this week

Wash's nomination as Fed Chair passes Senate... expected to take office this week

Nomination for chair position approved, following approval for 'Fed Governor' a day earlier

The nomination of Kevin Warsh, the next chairman candidate for the Federal Reserve (Fed), the central bank of the United States, was passed by the U.S. Federal Senate on the 13th (local time).

The Senate put Warsh's nomination to a vote at a plenary session that day, resulting in 54 votes in favor and 45 against, thus approving the nomination.

Previously, the Senate had approved Warsh's nomination as a Fed Governor the day before, and with the approval of his nomination as chairman today, Warsh can immediately assume the position of Fed Chair after the term of current Chairman Jerome Powell ends.

The term for the Fed Chair is four years, and current Chairman Powell's term ends on the 15th. Warsh is expected to take office as the new Fed Chair as early as this week.

Furthermore, Warsh will directly preside over the Federal Open Market Committee (FOMC) meeting held on the 16th-17th of next month in his capacity as chairman. The FOMC meeting is the body that decides the benchmark interest rate in the United States.

During his Senate hearing, Warsh emphasized the independence of the Fed, stating that monetary policy would be decided based on the Fed's own judgment rather than the President's demands.

However, U.S. President Donald Trump has strongly criticized current Chairman Powell, stating that the Fed has been an obstacle to the government's economic policies by not cutting interest rates in a timely manner. Since he nominated Warsh as chairman candidate with high expectations for interest rate cuts, the future actions of the 'Warsh Fed' are drawing attention.