Washington DC [US], May 14 (ANI): The Senate on Wednesday (local time) confirmed Kevin Warsh to serve as the 17th chair of the Federal Reserve, as he succeeds Jerome Powell.

CNN Business reported that Warsh was confirmed in a 54-45 vote, which was split along party lines, with only Democratic Senator John Fetterman of Pennsylvania crossing the aisle to vote in favour of Warsh's nomination.

Warsh's first meeting as Fed chair is set for June 16-17, with former Fed Chair Powell retaining a seat as governor for now.

It further reported that the vote was the most partisan for a Fed chair nominee in history.

Warsh is set to lead the central bank as the economy stands rattled by geopolitical tensions, which are driving inflation higher in the United States.

According to CNN Business, Warsh is widely viewed to be more aligned with President Donald Trump and he takes the helm amid inflation jumping to a three-year high in April, as per the Consumer Price Index and it now outpaces the wage growth.

It mentioned that while Warsh could control the agenda at every Fed meeting, he would not have unilateral authority over what the majority of the committee decides.

The incoming Fed Chief had hinted at reducing the size of Fed's USD 6.7 trillion balance sheet, coordinate more closely with the Treasury Department on it; cut back on the number of policy meetings each year from eight to four; host fewer news conferences; shrink the size of the Fed's Washington-based workforce; and not provide frequent hints on the path of interest rates.

According to JPMorgan analysts, all those changes would be within the remit of Warsh's power as chair, as per the report by CNN Business.

At his last news conference as chair, Powell had congratulated Warsh and said he would support him in any way he could. (ANI)