THE Kevin Wars. was ratified on Wednesday as its new president Federal Reserve, taking the leadership of the US Federal Reserve at a time when the American president Donald Trump pressure for lower Interest rates, at the time when the new data on inflation They complicate the possibility of reductions.
In one of the most divisive votes ever on the Fed leadership, 56-year-old Wars secured approval to succeed Jerome Powell., which has been at the helm of the central bank since 2018 and has been completed on Friday.
The Senate approved Wars' appointment by 54 votes in favor and 45 against, putting an end to a long-term process that began in the summer of 2025 and included extensive search for Powell's successor. The vote moved almost exclusively on party lines, with the sole exception of Pennsylvania's Democratic Senator, John Fetterman, who voted in favour of Wars.
Trump has not hidden what he expects Wars to proceed with interest cuts, having repeatedly criticised Powell for a monetary policy he considered too strict. Wars was one of the main contenders in a succession race that at some point included nearly twelve candidates, including current commanders Christopher Waller and Michel Bowman».
Validation of the appointment, however, comes after separate reports published this week showing that inflation remains significantly above the Fed's 2% target, while pressures in the production chain have intensified to the highest levels in over three years. The markets have already narrowed the expectations of interest rate cuts, while they no longer rule out even the possibility of increasing them later in the year.
It is noted that this will be Wars' second term at the U.S. Federal Reserve.
During his first term in the Fed, from 2006 to 2011, Wars was at the heart of a critical period: initially the central bank underestimated the risks from the high risk housing crisis, which eventually sparked the international financial crisis, and then proceeded to unprecedented economic support measures. Among them was the massive purchase of assets, which launched the Fed balance sheet over $4 trillion through the so-called quantitative relaxation – a policy that Wars himself had then considered to have crossed the line.
Since leaving the Fed, Wars has remained firmly critical of monetary policy and last year, in an interview with CNBC, he even asked «change status» central bank. Meanwhile, he has taught at Stanford School of Business Administration and has participated in various boards of directors.
«Wars replaces Stephen Miran on the board of Fed, who had been appointed commander in September 2025 to cover the few months remaining from Adriana Cougler's term, which had suddenly resigned in August.
Miran has reduced to every decision of the Federal Open Market Commission (FOMC) since taking over the position. When the Commission decided three consecutive reductions of 0.25% in 2025, it supported a larger reduction of 0.50 points. This year, he has disagreed with decisions to maintain interest rates at unchanged levels, arguing against a 0.25% reduction.
Wars' first meeting as FOMC president is scheduled for 16–17 June.
At the same time, Wars will be the richest president in Fed history, with assets exceeding $100 million. As head of the central bank, he will be obliged to liquidate much of his investments, within a stricter framework of ethics applied following disclosures of controversial transactions by senior officials.
Source: skai.gr
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