{"text":[[{"start":9.9,"text":"The US Senate has confirmed Kevin Warsh as Federal Reserve chair, paving the way for the financier to succeed Jay Powell at the helm of a central bank divided over how to respond to the fallout of the Iran war. "}],[{"start":22.35,"text":"Warsh, President Donald Trump’s pick to lead the Fed, was approved in a 54-45 vote on Wednesday afternoon, bringing to a close one of the most turbulent contests for the top job at the world’s most important central bank in decades. "}],[{"start":38,"text":"The vote was largely down party lines with just one Democratic senator — Pennsylvania’s John Fetterman — joining the chamber’s 53 Republican senators in backing him. "}],[{"start":47.3,"text":"Warsh, 56, is likely to take over from Powell next week. He will confront an economy facing a powerful resurgence in inflation, with data released over the past two days pointing to sharp rises in prices."}],[{"start":60.15,"text":"Stanley Druckenmiller, the billionaire investor for whom Warsh has worked since 2011, said the former Fed governor was “coming in at an extremely consequential time”. "}],[{"start":70.55,"text":"Druckenmiller, a mentor to Warsh, told the FT that he would inherit a Fed that has failed to reach its 2 per cent inflation target since early 2021. But he declined to say whether he thought the central bank might raise or lower interest rates in the coming months."}],[{"start":86.85,"text":"“Frankly everyone says we had a soft landing and we’re okay now, but we’ve been above target for five years,” Druckenmiller said. "}],[{"start":95.69999999999999,"text":"He added that he thought Warsh would be “more than capable” of leading the Fed at a time when the economy was being buffeted by “uncertainty” caused by the war and the AI boom."}],[{"start":106.89999999999999,"text":"Susan Collins, president of the Boston Fed, on Wednesday warned she could “envision a scenario” in which the central bank would need to raise interest rates to combat the surge in inflation."}],[{"start":118.64999999999999,"text":"Her remarks came after last month’s Fed meeting had the most dissents since 1992 as a trio of rate-setters said they no longer agreed the central bank should be signalling its next rate move will be a cut. The Fed has held rates steady at its past three meetings."}],[{"start":133.29999999999998,"text":"At the same time, Trump has relentlessly insisted on drastic cuts to borrowing costs and called Powell a “moron” and a “stubborn mule” for declining to accede to his demands. "}],[{"start":144.49999999999997,"text":"Following the Senate vote, the president must approve Warsh’s four-year term. "}],[{"start":149.39999999999998,"text":"Warsh has committed to sell many of the more than $130mn in assets he owns before taking office. Once the financial transactions are made, he will be sworn in. Powell’s term as chair officially expires on Friday, but he could remain in the role temporarily until Warsh takes office. "}],[{"start":167.89999999999998,"text":"Warsh’s nomination process was beset by delays prompted by Trump’s threats to the central bank’s independence."}],[{"start":174.74999999999997,"text":"Thom Tillis, Republican senator for North Carolina, refused to back Warsh until the Department of Justice dropped its criminal investigation into Powell’s testimony regarding the $2.5bn renovation of the Fed’s headquarters. "}],[{"start":190.04999999999998,"text":"Powell has denied any wrongdoing, with both the Fed chair and Tillis viewing the probe as a means to press central bank officials into slashing borrowing costs. "}],[{"start":199.45,"text":"Every living former Fed chair and several former White House economists who served Democratic and Republican administrations came to Powell’s defence following the announcement of the probe in January."}],[{"start":211.25,"text":"Tillis, who held a deciding vote on the influential Senate banking committee, blocked the nomination moving to the floor until DoJ officials said they would not reopen the investigation unless the Fed’s inspector general provided evidence that justified doing so."}],[{"start":226.85,"text":"The inspector general has been investigating $700mn in cost overruns on the building project since the summer at Powell’s request. "}],[{"start":235.65,"text":"The president announced Warsh as his pick in late January after top Wall Street financiers voiced concerns about the man long seen as favourite — Trump ally and National Economic Council director Kevin Hassett — taking the role. "}],[{"start":249.35,"text":"During a months-long interview process, Warsh, a former Fed governor, emerged as the candidate for regime change, proposing reforms to the central bank’s balance sheet, the way it communicates, and relationship with the Treasury."}],[{"start":262.6,"text":"But Warsh could face a challenge in winning support for his planned revamp within an institution where the Trump administration’s attacks on Powell and Fed governor Lisa Cook have created a fraught environment."}],[{"start":275.40000000000003,"text":"The Supreme Court has allowed Cook to remain on the Fed board while it considers her case against Trump, who attempted to fire her in August 2025 for alleged mortgage fraud, which she denies."}],[{"start":287.35,"text":"Powell also last month said he plans to stay on in the role of governor for an unspecified period of time amid concerns that the DoJ could reopen its probe against him."}],[{"start":297.90000000000003,"text":"Opening up another seat on the Fed’s board for Trump to fill presents a further threat to the central bank’s independence, analysts say."}],[{"start":305.90000000000003,"text":"Join FT journalists and special guest Brendan Greeley on May 20 at 12.00pm GMT for a subscriber webinar on The Dollar under Trump. How will Kevin Warsh change the Fed? Register at ft.com/trump-dollar and send us your questions"}],[{"start":332.15000000000003,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778727290_4196.mp3"}