On May 13, the Senate confirmed Kevin Warsh as the new chairman of the Fed. The vote was 54 to 43. One Democrat joined all Republicans in voting to confirm Warsh.

Warsh, a Harvard Law School graduate, was a member of the Federal Reserve Board of Governors from 2006 to 2011. He replaces Jerome Powell, whose term as Fed chair ended on June 15. Powell was the target of frequent attacks by President Trump for his failure to agree to interest rate cuts deep enough to suit the President.

Prospects: President Trump has for months been pressuring the Fed to cut interest rates. Whether the Fed, under new Chairman Warsh, will cut rates at its next Federal Open Markets Committee (FOMC) meeting in June will be a key test of whether the President’s insistence on rate cuts will hold sway with the new chairman and/or the Fed’s Open Market Committee. The next committee meeting is scheduled for June 16-17.

NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at dboyle@naifa.org; Mike Hedge – Senior Director – Government Relations, at mhedge@naifa.org; or Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org