Fetterman and Senate GOP Confirm Trump 'Sock Puppet' Warsh as Fed Chair

The US Senate on Wednesday voted to confirm Kevin Warsh, the financier picked by President Donald Trump to be the next chair of the Federal Reserve.

Sen. John Fetterman (D-Pa.) joined with all Senate Republicans in voting to confirm Warsh, whose nomination was opposed by all other Senate Democrats except for Sen. Kirsten Gillibrand (D-NY), who did not vote.

US Treasury Secretary Scott Bessent thanked Republican senators and Fetterman for backing Warsh's confirmation, which he predicted would "usher in a new day at an institution that is in need of accountability, sound policy guidance, and the renewed sense of purpose to help guide our economy."

Warsh's nomination has been controversial from the start given that Trump has repeatedly undermined the US central bank's independence by browbeating outgoing Federal Reserve Chairman Jerome Powell to lower interest rates.

After the confirmation vote, Sen. Elizabeth Warren (D-Mass.) warned that Warsh would try to carry out Trump's demands to lower rates, even as key metrics show that inflation has accelerated in recent months thanks to the president's illegal war with Iran.

"Trump wants to control interest rates, and he nominated Kevin Warsh to be his sock puppet," wrote Warren in a social media post. "Warsh's confirmation is another step in Trump's attempt to take over the Fed. That's not good for working families—it's good for Wall Street."

Sen. Dick Durbin (D-Ill.) said he voted against Warsh's nomination because "working families are struggling more than ever to afford basic goods," and "they need a central bank that will fight for them, not the president and billionaires."

"I am not convinced that Warsh has the willingness to do what is best for the American people," Durbin added. "For that reason, I voted no on his nomination."

While Trump may want Warsh to start slashing interest rates to boost the economy, he likely faces an uphill climb in convincing other Fed board members.

Data released by the US Bureau of Labor Statistics this week showed the consumer price index posted a year-over-year increase of 3.8%, the highest rate of inflation since May 2023, driven by energy prices that surged nearly 18% from the year before.

Additionally, the latest producer price index, which measures wholesale prices paid by businesses and is considered a strong predictor of future inflation, posted a year-over-year increase of 6% in April, indicating inflation will likely accelerate in the coming months.

During Powell's final meeting as Fed chair last month, the board voted to hold interest rates steady, with several board members indicating opposition to projecting future rate cuts in the near term given signals of rising inflation.