Washington DC - The Senate on Wednesday confirmed Kevin Warsh as the new Federal Reserve chairman to lead a central bank whose independence is under attack and with inflation at a three-year high.

The Senate voted 54 to 45 in favor of Warsh, with Republicans holding a slim majority and ensuring President Donald Trump's nominee to replace Jerome Powell was confirmed.

Once known as a monetary "hawk" against inflation, Warsh has shifted in line with Trump's push for lower interest rates that has posed an unprecedented challenge to the Fed's independence.

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The incoming Fed chair, confirmed for a four-year term, has promised to bring "regime change" at the bank, which he has criticized as too political and too open in communicating its decision-making.

But with inflation still above the Fed's long-term 2% target – and rising over Trump's Iran war – Warsh is unlikely to convince fellow members of the bank's rate-setting committee to cut immediately.

That could leave him open to attacks from Trump, who has relentlessly lashed out at Powell over rate decisions.

"Warsh's biggest challenge will likely be dealing with President Trump," said David Wessel, senior fellow at the Brookings Institution.

"The president does not respect the independence of the Fed, and he wants interest rates to be lower."