US Senate ready to confirm Trump's pick of Warsh as new Federal Reserve chief

Warsh's confirmation has been in doubt in recent months when Republican Senator Tom Tillis said he would block the nomination while the Justice Department investigates current Federal Reserve Chairman Jerome Powell. The investigation into Powell was dropped in April, clearing the way for the Senate to confirm Warsh.

Warsh (56), a former Fed official, becomes president of the US central bank at a very difficult time for that independent institution, writes the AP agency.

Inflation has been above the Fed’s 2 percent target for five years and is now rising faster because of a surge in gasoline prices. The Fed’s policy-setting committee is divided, with a large number of dissenting votes. Powell, after years of attacks from a Republican president and an unprecedented legal investigation by the Justice Department, plans to remain on the Fed board after his term as chairman ends, potentially creating a competing center of power.

The Senate is expected to vote on Warsh's confirmation this afternoon local time, having previously approved his nomination to the Fed's Board of Governors. Senator John Fetterman of Pennsylvania is the only Democrat who joined Republicans in confirming Warsh's appointment to the Board.

The Fed has faced numerous threats to its independence from Trump, who has repeatedly attacked Powell for not cutting interest rates. Trump has also sought to fire Fed Governor Lisa Cook and launched an investigation into Powell's brief Senate testimony on the building's renovations.