Overview
- Jerome Powell was designated chair pro tempore on Friday in a 5–1 Board vote, with Stephen Miran dissenting and Michelle Bowman abstaining, to lead the Fed until Kevin Warsh takes the oath.
- Kevin Warsh won Senate confirmation 54–45 earlier in the week and will begin a four-year term after completing asset divestments and receiving his commission, with his first policy meeting scheduled for June 16–17.
- Inflation ran at 3.8% in April as the Iran conflict pushed energy costs higher, and fresh data showed services and wholesale prices climbing, which leaves little room for early rate cuts.
- The most recent policy meeting produced four dissents, the most since 1992, and Warsh has said he favors frank debate over scripted consensus at future meetings.
- The Justice Department dropped its criminal probe into Powell, who remains a voting governor, as Democrats voice concern Warsh could heed President Trump’s push for lower rates and Warsh pledges independence.