Trump’s Fed pick faces scrutiny over independence and interest rates

Donald Trump’s nominee to lead the US Federal Reserve has secured Senate confirmation — but only after one of the most divisive votes in the central bank’s history.

Kevin Warsh, a former investment banker and lawyer, faced sharp questioning from Democrats over whether he would remain independent from the White House or follow President Trump’s economic agenda.

The confirmation battle comes after months of public attacks by Trump against outgoing Fed Chair Jerome Powell, whom he repeatedly blamed for keeping interest rates too high.

Trump even criticized renovation costs at the Federal Reserve headquarters, triggering a Justice Department investigation that later became entangled in the political fight over Warsh’s nomination.

Now, with inflation at its highest level in three years and pressure mounting over borrowing costs, attention is turning to whether the new Fed leadership will cut interest rates — and how much influence the White House could have over monetary policy.

So is the Federal Reserve entering a new political era — and what could that mean for the US economy?

Al Jazeera's Patty Culhane reports

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Видео Trump’s Fed pick faces scrutiny over independence and interest rates канала Al Jazeera English