Overview
- President Donald Trump formally nominated former Fed governor Kevin Warsh to succeed Jerome Powell when the chair’s term ends in May 2026.
- Senator Thom Tillis has said he will block Senate Banking Committee action on Warsh until a DOJ investigation into Fed headquarters renovation costs and related testimony is resolved.
- The Federal Reserve cut rates by 25 basis points in September to 4.00–4.25 percent, with a divided FOMC and Governor Stephen Miran dissenting for a larger move.
- The administration’s attempt to remove Governor Lisa Cook is being litigated, and recent Supreme Court guidance indicates Fed governors can be dismissed only for cause.
- Analysts note Warsh’s record as a former governor with hawkish leanings who has recently endorsed rate cuts, but they stress that FOMC voting, persistent above‑target inflation, tariff and labor‑supply pressures, and market reactions will constrain policy shifts.