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2h ago

Kevin Warsh Sworn In as Fed Chair After Narrow Senate Vote

Market pricing shifted toward higher interest rates and the Fed’s June 16–17 meeting will be the first test of his reform plan and pledged divestiture of crypto holdings.

The exterior of the Marriner S. Eccles Federal Reserve Board building is seen in Washington, D.C., U.S., June 14, 2022. REUTERS/Sarah Silbiger/File Photo/File Photo
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Kevin Warsh (L) takes the oath of office from U.S. Supreme Court Associate Justice Clarence Thomas (R) as his wife Jane Lauder looks on during his swearing-in ceremony to be the new Chairman of the Federal Reserve in the East Room of the White House on May 22, 2026 in Washington, DC. Warsh succeeds Jerome Powell, who served as Chair for eight years. Anna Moneymaker/Getty

Overview

  • Warsh took the oath of office at the White House on Friday, May 22, with Supreme Court Justice Clarence Thomas administering the ceremony.
  • The Senate confirmed Warsh in a 54–45 vote on May 13 and Jerome Powell steps down as chair but will remain on the Fed Board as a voting governor.
  • Investors quickly moved to expect rate increases rather than cuts, with CME FedWatch and bond markets putting about a 70% probability on a December 2026 hike.
  • Warsh has pledged a reform-oriented Fed that would shrink the central bank’s balance sheet, change communications and forecasting, and he has promised to divest indirect crypto-related holdings disclosed during confirmation.
  • His near-term challenge is high inflation—April CPI around 3.8%—and the June 16–17 FOMC meeting will signal whether policy shifts and governance questions, including ethics scrutiny over his crypto stakes and the Powell overlap, change economic outcomes for borrowers, savers and risk-asset investors.