Trump's Federal Reserve chair nominee confirmed by Senate

Kevin Warsh was confirmed in the US Senate to the critical role of chair of the Federal Reserve. President Donald Trump nominated Warsh for the four-year term as the central bank's independence comes under attack and inflation hits at a three-year high.

In its role as central bank, the Federal Reserve is tasked by Congress with keeping prices stable, which it seeks to do by adjusting its short-term rate to make borrowing and spending more expensive, cooling growth and inflation.

The 54-45 Senate voted went largely along party lines to confirm Warsh for the post.

Warsh is set to replace outgoing chair Jerome Powell, who has been a frequent target of Trump's criticism.

Trump was vocal about wanting a Fed chair who would cut interest rates when the stock market rose. The move goes contrary to what traditional economics would prescribe.

In a social media post in December, the president delivered a stark warning: "Anyone that disagrees with me will never be the Fed chairman!"

Republican Senate Majority Leader John Thune urged his colleagues to confirm Warsh, saying that it was critical for a Fed chair to "understand not only the macro" but also "appreciate the microeconomy: and that's the hardworking Americans, their jobs and their livelihoods."

"Kevin Warsh is just such a person,” Thune added.

Investigation into Powell dropped

Democrats blasted Trump's attempts at influencing the central bank's decision-making, with Democratic Senator Elizabeth Warren accusing Warsh of being a "sock puppet" for Trump.

Warsh rejected the accusation that Trump had pressured him. "I will be an independent actor if confirmed as chair of the Federal Reserve," he vowed during a congressional hearing over his nomination.

But the issue that threatened his nomination had to do with Powell, the man he was expected to replace.

Republican Senator Thom Tillis vowed to withhold his support for Warsh as long as the Trump administration went along with an unprecedented Justice Department investigation into Powell.

The Trump administration threatened to indict him following his congressional testimony about a Federal Reserve building renovation project.

The probe was ultimately dropped in April, paying the way for Warsh's confirmation.

As for Powell, he has signaled that he plans to remain on the Fed’s board even after his term as chair ends.

Edited by: Sean Sinico