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Kevin Warsh Takes Over the Federal Reserve as Jerome Powell Steps Down

Investors look to the June 16–17 meeting for his first policy signals.

Overview

  • Kevin Warsh took over as Federal Reserve chair on Friday after winning Senate confirmation 54–45 on May 13.
  • He has said he will defend the Fed’s independence despite President Donald Trump’s push for faster interest rate cuts.
  • He inherits a split rate-setting committee after an 8–4 vote on April 29, the biggest dissent since 1992.
  • U.S. inflation is running above the Fed’s 2% goal, and analysts link part of the recent pressure to the war in the Middle East.
  • The Fed’s key rate stands at 3.50% to 3.75%, which shapes borrowing costs for mortgages, credit cards, and business loans.