Kevin Warsh confirmed as Fed chair, succeeding Jerome Powell

The US Senate confirmed Kevin Warsh as the next head of the Federal Reserve in a 54-45 vote, making it the most partisan confirmation for a Fed chair on record.

Warsh will replace Jerome Powell, whose chair term ends this week, though Powell is expected to remain a Fed governor.

The leadership change comes as inflation continues rising:

• Producer prices jumped 6% in April
• Markets are now pricing no rate cuts this year
• Some policymakers are even discussing possible rate hikes

Warsh is expected to lead his first Fed meeting on June 16-17, where investors will closely watch whether the central bank shifts toward a more hawkish stance.