Whether Warsh, who was elected Federal Reserve Chairman by the narrowest margin in history, will comply with Trump's interest rate cuts remains to be seen.

BlockBeats reports that on May 14, the Senate narrowly confirmed Kevin Warsh as Federal Reserve Chairman, marking the most controversial leadership change at the Fed in decades and testing the institution's policy independence. The vote on Wednesday was 54-45, the narrowest margin in the history of Fed chairman confirmations. No Fed chairman has been confirmed by such a narrow margin since Senate confirmation became a prerequisite for the position in 1977. This reflects the polarized political landscape in Congress and Democrats' concerns that Warsh would succumb to President Trump's demands for rapid interest rate cuts. In the past, bipartisan support for Fed nominees has been the norm, not the exception. Alan Greenspan even received unanimous support in 2000, securing a second term as Fed chairman. Jerome Powell, whose term ends on Friday, received at least 80 Senate confirmations each time he led the Fed. The main challenge facing the incoming chairman is that with less than six months until the midterm elections, Trump's Republican majority in Congress is being tested, and he faces the question of whether he will continue the Fed's tradition of making interest rate decisions unaffected by political pressure. A growing number of Fed officials believe the central bank should clearly state that its next interest rate move could be either a cut or a hike. For Warsh, this means facing fierce opposition if he tries to steer the Fed toward what officials consider an unreasonable rate cut. Warsh also hinted that he will seek to shrink the Fed's $6.7 trillion balance sheet and will argue at his confirmation hearing that rate cuts are fairer than balance sheet expansion because they have a broader scope of benefits.