Overview
- President Donald Trump has selected former Fed governor Kevin Warsh to take over when Jerome Powell’s chair term ends in May 2026.
- Governor Lisa Cook has sued after the White House sought to dismiss her, and the Supreme Court has indicated Fed governors may be removed only for cause.
- Senator Thom Tillis has warned he will block committee action on Warsh until a Justice Department probe related to Fed headquarters renovations is resolved.
- The Federal Open Market Committee recently cut rates by 25 basis points to a 4.0–4.25 percent range in a split decision, reflecting limited room to maneuver with inflation still above target.
- Warsh’s policy stance remains contested, with some analysts citing his crisis‑era hawkishness even as he has lately voiced support for rate cuts.