Warsh nomination at impasse amid DOJ probe & Iran war, Fed leadership limbo
Key Questions
What is the status of Kevin Warsh's Fed chair nomination?
Warsh nomination at impasse amid DOJ probe delaying post-May confirmation; Powell serves as pro tem chair after May 15 term end. Hill stall and Tillis issues persist.
How does Williams address FOMC leadership concerns?
Williams reassures FOMC leadership not in question despite slow Warsh confirmation and Iran war complications.
What is Warsh's proposed model for the Fed?
Warsh advocates 'family fight' model and ditching dot plot for more dynamic policy amid cut odds at 0% for 2026.
What are the risks to Fed beyond rates?
Fed's biggest risks now unrelated to rates, including leadership limbo, QT uncertainty, and oil shocks during nomination stall.
When might rate cuts occur per forecasts?
Nomura sees September 2026 cuts; markets price 70% hold through year-end amid Warsh uncertainty.
How is the balance sheet reduction progressing?
Dallas Fed maps quiet retreat from $6.6T balance sheet; QT limbo amid Fed division and geopolitical tensions.
What market impacts from Warsh nomination?
Warsh shock reshapes markets with US Dollar surge and gold correction; global repricing amid nomination impasse.
Who is Kevin Warsh and his vision?
Trump’s pick Warsh, ex-Fed governor, seeks ‘regime change’ at central bank; confirmation hearing possible soon despite troubles.
Williams reassures despite Warsh snags/DOJ probe/Tillis/Trump Cook bid/Powell pro tem to '28; Powell term May15; cut odds 0% 2026; FOMC div/QT limbo oil shocks.