WASHINGTON : The Senate is expected to begin the confirmation process for Warsh’s separate four-year term as Fed chair immediately, with a key procedural vote likely paving the way for final approval as early as Wednesday. Powell’s term as chair officially ends on Friday.

A former Federal Reserve governor, lawyer and financier, Warsh is set to take charge at a time when the Fed is facing growing political pressure over interest-rate policy and its independence from the White House.

President Donald Trump has repeatedly pushed for lower interest rates and intensified pressure on the central bank in recent months. The administration’s efforts have included backing a Department of Justice investigation into Powell’s handling of a Federal Reserve building renovation project, although the investigation was later dropped. However, prosecutors have indicated the matter could still be reopened.

In another unprecedented move, Powell has said he plans to remain on the Federal Reserve Board even after his tenure as chair ends, citing concerns over what he described as “legal attacks” on the Fed that could threaten its ability to make policy decisions free from political influence.

Warsh has signaled plans for major changes at the central bank, including closer coordination with the Treasury Department and the Trump administration on non-monetary policy matters. He has also advocated shrinking the Fed’s balance sheet, arguing that doing so could create room for lower policy rates in the future.

The leadership transition comes as rising oil prices linked to the Iran conflict fuel inflation concerns and reduce expectations for interest-rate cuts this year. Financial markets are currently pricing in roughly a one-in-three chance of a rate hike by December. The Fed’s benchmark short-term interest rate currently stands between 3.50% and 3.75%.

The Federal Reserve chair holds one vote on the 12-member Federal Open Market Committee, which determines U.S. interest-rate policy, while also playing a key role in shaping discussions among the committee’s broader 19-member policymaking body.