WASHINGTON (AP) 鈥� The Senate on Wednesday is set to confirm President Donald Trump鈥檚 nominee to lead the Federal Reserve, , bringing new leadership to the world’s most powerful central bank at .
Warsh鈥檚 confirmation was thrown into doubt in recent months after Republican Sen. of North Carolina said he would block the nomination while the Justice Department investigated Fed Chair Jerome Powell. was dropped in April, clearing the way for the Senate to confirm Warsh.
Warsh, 56, a former top Fed official, is becoming chair at for the independent agency.
Inflation has for five years and is now rising faster because of . The Fed’s interest rate-setting committee is divided and saw in more than three decades last month. And Powell, after years of personal attacks from the Republican president and by the Justice Department, plans to stay on the Fed鈥檚 board even after his term as chair ends, potentially creating a competing power center.
The Senate is expected to vote on Warsh’s confirmation on Wednesday afternoon, a day after approving his nomination to the Fed’s Board of Governors. Pennsylvania Sen. John Fetterman was the lone Democrat to side with Republicans in confirming him to the board.
The Fed has faced numerous threats to from Trump, who has repeatedly attacked Powell for not cutting interest rates. Trump also sought to and launched into brief Senate testimony by Powell on a building renovation.
Kevin Hassett, director of the White House鈥檚 National Economic Council, said in a Fox News interview on Sunday that he believes the markets are relieved that Warsh 鈥渋s going to help lower interest rates over time.鈥�
鈥淥bviously, data driven. I鈥檓 not putting any pressure on Kevin Warsh,鈥� Hassett said. 鈥淲e know that he鈥檚 an extremely smart, competent person who could be very convincing when he talks to his colleagues.鈥�
In December, Trump said on his social media platform that he wanted a Fed chair who would cut interest rates when the stock market rose 鈥� the opposite of what traditional economics would prescribe 鈥� and added, 鈥淎nyone that disagrees with me will never be the Fed chairman!鈥�
Trump鈥檚 comments have fueled concerns over whether Warsh will set rates based on economic conditions or seek to cut rates to appease Trump, even if doing so could worsen inflation. At last month, Sen. Elizabeth Warren, a Democrat from Massachusetts, derided him as a 鈥渟ock puppet鈥� for Trump. Warsh declined to say that Democrat Joe Biden had won the 2020 election against Trump, who has that voter fraud cost him reelection.
Still, Warsh denied at the hearing that Trump had pressured him to reduce the Fed鈥檚 key rate.
鈥淭he president never once asked me to commit to any particular interest rate decision, period,鈥� Warsh said then. 鈥淣or would I ever agree to do so if he had. … I will be an independent actor if confirmed as chair of the Federal Reserve.鈥�
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Associated Press writer Joey Cappelletti contributed to this report.
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