Overview
- Warsh, confirmed by the Senate 54–45 on Wednesday, took the chair on Friday as Jerome Powell left the role but remained on the Board of Governors until January 2028.
- He inherits faster inflation tied to the Middle East conflict and higher energy costs, with price increases spreading from fuel to services that usually drop more slowly.
- The rate-setting committee showed deep division in the April 29 vote at 8–4, the biggest dissent since 1992, which limits room for rapid interest-rate cuts.
- Warsh told senators he would defend the central bank’s autonomy and signaled changes in how he uses interest rates and the Fed’s balance sheet as President Trump pushes for faster reductions.
- The next policy meeting on June 16–17 arrives with the federal funds rate at 3.50% to 3.75% and traders shifting odds of future moves based on CME FedWatch.