GoKawiilKevin Warsh vowed to embark on “regime change” at the Federal Reserve — and now he’ll get his chance. The Senate confirmed Warsh as the next Fed chair today in a 54-45 vote, with the Wall Street veteran set to replace Jerome Powell on May 15, according to The New York Times.
Warsh inherits a challenging economic landscape. Rising energy prices from the Iran conflict have pushed inflation sharply higher, weakening the case for interest rate cuts that seemed likely earlier this year. Investors had largely ruled out rate cuts for 2026, and expectations have now shifted toward the potential for rate increases next year instead.
Powell announced he’ll remain at the Fed as a governor through January 2028, though he said he’ll keep a “low profile.” That could make for an awkward dynamic as Warsh implements his promised changes.
Warsh’s first task will be navigating the interest rate question, but the labor market remains relatively strong, removing the urgency for immediate action. No Fed official has called for a rate increase yet, but a growing number are signaling that it might happen soon. Warsh’s first meeting as chair is scheduled for June 16-17.