Overview
- President Trump named former Federal Reserve governor Kevin Warsh to become chair when Jerome Powell’s term ends in May 2026.
- Senator Thom Tillis said he will block a committee recommendation for Warsh until a Department of Justice probe tied to the Fed’s headquarters renovation and Powell’s testimony is resolved.
- The administration’s attempt to remove Governor Lisa Cook led her to file suit, confronting a Supreme Court standard that allows dismissal of Fed governors only for cause.
- The Federal Open Market Committee recently cut rates by 25 basis points to a 4.00–4.25 percent range, with Governor Stephen Miran dissenting for a 50‑basis‑point move, highlighting internal divisions and the chair’s limited unilateral power.
- Warsh served on the Fed’s Board from 2006 to 2011 and was active during the 2008 crisis; analysts note his critiques of the enlarged balance sheet alongside recent support for rate cuts, leaving markets to anticipate policy constrained by the FOMC and data.