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Warsh Poised for Fed Chair as Markets See June Hold and Powell Stays on Board

Powell’s decision to stay on the board curbs any quick shift in policy.

Overview

  • Prediction markets now price a near‑certain confirmation by mid‑May after a party‑line advance out of the Senate Banking Committee.
  • Powell plans to remain a voting governor until the probe over Fed renovations is resolved, which limits a new chair’s sway because rate moves are set by the 12‑member FOMC.
  • Futures tracked by CME FedWatch point to holding rates in June, show very low odds of any cut this year, and assign rising chances to a hike.
  • Warsh has signaled a back‑to‑basics approach that trims public forward guidance and could quicken the Fed’s balance‑sheet runoff.
  • Sen. Elizabeth Warren asked Stanley Druckenmiller’s firm to waive confidentiality so Warsh can fully disclose Duquesne‑linked holdings, even as he pledges to divest if confirmed.