Warsh's Confirmation as US Fed Governor Passed... Chairman Confirmation Vote Expected on 13th

Warsh's Confirmation as US Fed Governor Passed... Chairman Confirmation Vote Expected on 13th

Current Chairman Powell's term ends on the 15th... Focus on Fed's interest rate decision under 'Warsh System'

The US Senate passed the confirmation bill for Kevin Warsh, the nominee for the US Federal Reserve (Fed) Chairman, as a Fed Governor on the 12th (local time).

Bloomberg, Reuters, and other news agencies reported that the Senate approved Warsh's confirmation as a Fed Governor with 51 votes in favor and 45 against at its plenary session that day. The term for a Fed Governor is 14 years.

The Senate confirmation procedures for Fed Governor and Chairman positions are conducted separately.

The Senate is expected to hold a separate vote on the 13th to confirm Warsh as the Fed Chairman. The term for the Fed Chairman is 4 years.

The term of the current Fed Chairman, Jerome Powell, ends on the 15th.

Amid calls from US President Donald Trump for interest rate cuts, attention is focused on what interest rate decisions the new Fed, led by nominee Warsh, will make. The next Federal Open Market Committee (FOMC) meeting, which determines the benchmark interest rate, will be held on June 16-17.

During his Senate confirmation hearing, nominee Warsh stated his position to decide monetary policy based on the Fed's independent judgment, saying, "Presidents tend to prefer interest rate cuts," but also, "The independence of the Fed rests with the Fed."