BackPOLITICS
Warsh confirmed as Fed chair as central bank faces Trump assault
The Senate confirmed Kevin Warsh as the new Federal Reserve chairman in a 54-45 vote, amid concerns about Fed independence as inflation remains above target. Warsh's stance aligns with President Trump’s push for lower interest rates, while before confirmation Powell faced a DOJ probe that was later dropped, and the Supreme Court is set to rule on Cook's board status.
Why It Matters
Warsh's leadership will test the Fed's independence amid political pressure from the White House and broad inflation concerns, with potential implications for future interest-rate policy.
Timeline
11 Events
Warsh vows regime change at the Fed
May 13, 2026
Warsh has promised to bring 'regime change' at the bank, criticizing it as too political and too open in communicating its decision-making.
Warsh confirmed as Fed chair
May 13, 2026
The Senate voted 54 to 45 to confirm Kevin Warsh as the new Federal Reserve chairman to lead a central bank whose independence is under attack and with inflation at a three-year high.
Powell DOJ probe dropped
May 2026
The criminal probe against Powell has since been dropped.
Fed policy meeting shows dissent
April 2026
At the last meeting, there was a rare outpouring of dissent, with three members declaring that the Fed should indicate a rate hike could be on the cards.
Labor supply decline linked to deportation drive and ageing population
April 2026
A significant drop in labor supply is noted, driven by Trump's deportation drive and an ageing population.
Weak job growth led by health care sector
April 2026
Job growth has been weak, with new jobs mainly driven by the health care sector.
Unemployment around 4.3%
April 2026
The unemployment rate has remained relatively firm at around 4.3 percent.
Inflation at 3.8% in April 2026
April 2026
In April, year-on-year inflation came in at 3.8 percent, fueled in part by surging oil prices in the wake of the US-Israel war on Iran.
Supreme Court ruling on Cook removal
2026
The Supreme Court is due to rule on the legality of removing Cook.
Trump separate attempt to oust Lisa Cook
January 2026
Trump separately attempted to oust Fed Governor Lisa Cook from the board.
Powell DOJ probe disclosed
January 2026
Powell said a Justice Department criminal probe against him over cost overruns related to a building renovation project was intended to create pressure on monetary policy decision-making.