Warsh confirmed and sworn in as Fed chair
Key Questions
Who was confirmed as the new Fed chair?
Kevin Warsh was confirmed by the Senate in a 54-45 vote and sworn in as Fed chair. He replaces Jerome Powell and has signaled a hawkish policy stance.
What key policy signals has Warsh sent as Fed chair?
Warsh has prioritized quantitative tightening, communications reform, an overhaul of the dot plot, and a new inflation metric. He indicated no rate cuts through 2026 while inflation remains above 4%.
What do recent Fed minutes and Warsh's plans suggest about monetary policy?
Recent minutes and Warsh's reset plan reinforce a hawkish stance with warnings of possible rate hikes. Traders are betting on a hike by December 2026 amid the unfolding policy dilemma ahead of the June FOMC.
How are markets reacting to Warsh's appointment?
Foreign central banks are selling Treasuries, and 22% of traders see a hike as likely as a cut. Nomura has joined the camp forecasting no cuts in 2026 due to sticky inflation.
What did Trump say to Warsh upon his swearing-in?
Trump told Warsh to do his 'own thing' as Fed chair. This comes as Warsh assumes the role amid inflation pressures and a policy dilemma.
What inflation outlook has Warsh expressed?
Warsh has said inflation can be lower and has touted reforms to address it. He faces a tougher outlook as inflation pressures return and broaden across the economy.
What changes might Warsh implement at the Fed?
Warsh plans reforms including better communications and a revised dot-plot approach. These aim to clarify policy amid persistent inflation above target.
How does Warsh's confirmation affect rate expectations?
Traders now price in a higher chance of hikes by late 2026 rather than cuts. This aligns with views from officials like Waller who see hikes as equally likely as cuts.
Senate confirms Kevin Warsh (54-45); sworn in as Chair. Signals QT priority, comms reform, dot-plot overhaul, new inflation metric and no cuts through 2026 amid inflation above 4%. Recent Fed minutes and Warsh reset plan reinforce hawkish stance with warnings of possible hikes. Traders bet on hike by Dec 2026. Policy dilemma unfolding ahead of June FOMC. Foreign central banks selling Treasuries; 22% traders see hike likely as cut; Waller flips hawkish. Nomura joins no-cuts-2026 camp.