Kevin Warsh Is The US Fed’s 17th Chairperson, Senate Approves

• Kevin Warsh was President Donald Trump’s pick to head the U.S. Fed after Jerome Powell 
• Warsh is known for his hawkish leanings towards monetary policy.
• Warsh’s first meeting as chair of the FOMC is scheduled for June 16-17.

The U.S. Senate on Wednesday confirmed Kevin Warsh as the 17th chairperson of the U.S. Federal Reserve, a day after his appointment to the Board of Governors, officially taking over from Jerome Powell at a time when inflationary pressures grip the economy.

The Senate confirmed with a vote of 54-45, almost entirely along party lines. Pennsylvania Democrat John Fetterman was the lone crossover.  

Powell will stay on at the Fed’s board as he has two years left in his term as governor. Powell said last month in a monetary policy press briefing that he will remain at least until ongoing investigations related to the Fed headquarters renovations are complete. 

Warsh, who has historically shown hawkish tendencies, recently called for regime change and has actively advocated lower interest rates even as inflation remains well above the 2% target. 

Rep. French Hill, R-Ark., praised the Fed’s decision. “Chairman Warsh has repeatedly emphasized the importance of placing affordability and price stability at the center of our economic agenda,” Hill said in a statement. “His commitment to disciplined monetary policy will help restore confidence in our economy and support long-term prosperity.”

Warsh’s first meeting as chair of the FOMC is scheduled for June 16-17. 

The S&P500 hit record highs, the tech-heavy Nasdaq added 1.4% and the Dow Jones inched 0.2% higher at the time of writing. 

Warsh’s Regime Change Push 

Warsh’s appointment is seen by many analysts as a signal of a "regime change" in how the Fed communicates with Wall Street. Unlike several of his predecessors who climbed the ranks through academia, Warsh’s background is rooted in investment banking and practical market mechanics.

A Warsh-led Fed is expected to prioritize deregulation and lower interest rates, something President Donald Trump has advocated during his previous and current tenure. 

Economists suggest his tenure may focus on strengthening the dollar and ensuring that the Federal Reserve’s balance sheet — which swelled during the pandemic — is more aggressively trimmed.

“I take my responsibility to be an independent leader of the Federal Reserve very seriously, if confirmed by this body. I take the integrity of the office and my personal integrity very seriously,” Kevin Warsh told senators in April. 

U.S President Donald Trump has made several statements on how he expects Warsh to lower rates, and earlier in January, jokingly mentioned that he would sue Warsh if he didn’t lower interest rates. 

SPY, QQQ Retail View 

Retail sentiment on Stocktwits was "bullish" with "normal" message volumes for the SPY and was "bullish" with "high" message volumes for QQQ. 

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