The U.S. Senate has approved Kevin Warsh as the new Federal Reserve Chairman.
Warsh assumes control during a period when inflation has stayed above the Fed’s 2% target for over five years, further driven by tariffs and a spike in oil prices due to the Middle East conflict.
The vote was 54-45, with one Democrat, John Fetterman of Pennsylvania, joining all Republicans to support President Trump’s nominee for the central bank.
Warsh will act as chair for four years. Jerome Powell, whose term as chair ends on Friday, has chosen to remain on the Board of Governors.
The latest report on consumer prices shows the Consumer Price Index rose by 3.8% in April, up from 3.3% in March. Energy prices contributed to 40% of the increase, while shelter and food also gained. Excluding energy and food, core inflation reached 2.8%, up from 2.6%. Services inflation excluding energy increased by 3.3%, and goods prices, driven higher by tariffs, went up by 1.1%.
New inflation data released Wednesday offered further evidence of the challenge ahead for Warsh: wholesale prices jumped 6% in April, driven mainly by higher energy prices.
By CEO NA Editorial Staff
