Last night the United States Senate passed Kevin Warsh confirmed as a member of the Federal Reserve Board, making the cryptocurrency investor the leading candidate to replace Jerome Powell as chairman of the US central bank. Senate approval was the formal step necessary for Warsh to take a seat on the Fed's board and thus become its chairman. This decision paves the way for a subsequent vote that should elevate him to the position of chairman in the coming hours, the most powerful position in American monetary policy.
Senate confirmation comes as inflation hits three-year high
Warsh previously served at the Fed between 2006 and 2011., a period that included the global financial crisis. His career includes experience on Wall Street and ties to investors and funds exposed to the cryptocurrency market, making his nomination politically significant at a time when regulation of the sector is being defined. His Senate confirmation comes At a time of intense debate over inflation and digital asset policiesWarsh, while asserting the autonomy of the monetary institution, has already made it clear that he tends to favor lowering interest rates, even though price increases have exceeded the long-term inflation target, which has reached a three-year high.
The new vote for the nomination of president will take place by the end of the week
The Senate voted 51-45 to confirm Warsh's nomination for a 14-year term. The Senate will vote again later this week to decide whether Warsh will take over as Fed chairman for four years, replacing Jerome Powell, whose term is about to end. Within the board, Warsh will fill the vacancy left by Stephen Miran, governor appointed in September by a Trump ally to complete the term of Adriana Kugler, who had resigned.
