Kevin Warsh Confirmed as Federal Reserve Chair; Stephen Miran Resigns

The Senate confirmed Kevin Warsh as chair of the Federal Reserve on Wednesday in a 54-45 vote that fell mostly along party lines. Warsh, President Trump's nominee, will take office this week after outgoing Chair Jerome Powell's term ends on Friday. Federal Reserve Governor Stephen Miran said he will resign from the central bank effective once incoming Chair Kevin Warsh is sworn into office, or shortly before.

The move was expected because Miran's seat on the Fed’s Board of Governors will be taken by Warsh. In a letter announcing his resignation, Miran was critical of the Fed’s approach to measuring inflation. ” Miran also said he’s excited about the changes that Warsh plans to make at the Fed, including a shake-up of its communications and balance sheet policies.

A noted dove, Miran voted for interest-rate cuts in every policy meeting during his period as a policymaker, including dissenting votes urging the central bank to cut by more than fellow officials agreed.

Warsh's confirmation as chair was delayed after President Trump waged a pressure campaign against the Fed. The Justice Department launched a criminal investigation of the central bank, which drew objections from some Republican senators. Sen. Thom Tillis, R-N.C., initially blocked a committee vote on the nomination to protest that probe.

Tillis dropped his opposition only after a U.S. attorney agreed to drop the probe. Warsh has argued there is room for the central bank to lower interest rates. He also promised to use his own judgment in setting monetary policy and not to take orders from the White House.

He denied charges from Sen. Price pressures have only increased since the war with Iran snarled tanker traffic in the Strait of Hormuz, triggering a spike in the cost of crude oil and gasoline. A report from the Labor Department Tuesday said the cost of living had increased 3.8% in the last twelve months, the biggest annual increase in nearly three years.