Who Runs the US Federal Reserve — and Why It Affects Your World

The facts

• 1Kevin Warsh was confirmed by the US Senate as the 17th chair of the Federal Reserve on 14 May 2026, replacing Jerome Powell whose term expired the same week.
• 2The Federal Reserve, often called 'the Fed', is the central bank of the United States — it controls how much money flows through the economy by raising or lowering interest rates.
• 3Warsh was confirmed by the narrowest margin ever recorded for a Fed chair requiring a Senate vote, meaning a handful of senators decided who controls the world's most-watched interest rate.
• 4When the Fed raises interest rates, borrowing money anywhere — from home loans in Mumbai to business loans in Lagos — tends to become more expensive because global banks follow the US lead.
• 5Not everyone agrees on how the new chair should act: some want lower rates to boost growth, while others want higher rates to keep prices stable — a classic tradeoff central bankers face.