Overview
- Warsh’s nomination is formal, but he must face Senate Banking Committee hearings before a full Senate vote, with Powell’s chair term ending in May.
- Some senators have signaled they may hold up Fed-related nominations due to a Department of Justice inquiry involving Jerome Powell, raising the risk of delays.
- If confirmation slips past May, interim leadership could fall to Governor Michelle Bowman, adding uncertainty to the Fed’s near-term signaling.
- Markets quickly recalibrated after the pick, with gold and silver tumbling, the dollar strengthening, and equities wavering as odds of rapid rate cuts were trimmed.
- Warsh has voiced openness to cutting rates yet favors a sizable balance-sheet reduction, while the Fed just held rates steady in a 10–2 vote with two Trump-appointed dissents.