President Donald Trump’s nominee to lead the Federal Reserve won Senate confirmation on Wednesday.
Kevin Warsh was confirmed by the Senate by a vote of 54-45. He will replace Federal Reserve Chair Jerome Powell, whose term as chair expires this month.
Powell will remain on the Federal Reserve Board of Governors after stepping down as chair.
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Trump repeatedly criticized Powell during his tenure for declining to lower interest rates, arguing the Fed’s policies were hurting the economy. The president had publicly floated replacing Powell for months, but never followed through.
Powell also faced scrutiny earlier this year after the Department of Justice opened an investigation tied to his congressional testimony regarding renovations to the Federal Reserve’s headquarters in Washington, D.C.
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The confirmation drew criticism from some lawmakers concerned about preserving the Federal Reserve’s independence from political pressure.
Republican Sen. Thom Tillis of North Carolina accused the White House of attempting to undermine the Fed’s autonomy and said he would oppose future nominees to the central bank in protest. He backed down after the investigation was dropped.
The Federal Reserve plays a key role in the U.S. economy by setting the federal funds rate, which influences the rates banks charge each other for overnight loans. Those decisions can indirectly affect borrowing costs for consumers and businesses, including mortgage rates, auto loans and credit card interest rates.
Warsh previously served on the Federal Reserve Board of Governors from 2006 to 2011.
