Warsh Heads For Confirmations Today. Here's What His Fed Looks Like

Kevin Warsh was confirmed to the Federal Reserve Board of Governors on Tuesday in a 51-45 Senate vote, with a second vote to confirm him as Fed Chair expected Wednesday, May 13 — replacing Jerome Powell, whose term ends Friday, May 15. Warsh inherits a challenging environment on day one: April's CPI came in at 3.8% annually, the highest since May 2023, with bond markets now pricing in roughly a 1-in-3 chance of a rate hike by year-end. Warsh has publicly called for "regime change" at the Fed, advocating for less communication, a smaller balance sheet, and lower benchmark rates over time — but the inflation data he's walking into puts those goals in direct tension with economic reality. His first FOMC meeting as chair is June 16–17, which will be the first real signal of how he intends to navigate that conflict. For real estate professionals, the rate-setting chain hasn't changed: inflation pressure drives Treasury yields, Treasury yields drive nationally reported mortgage rates — and Warsh's confirmation changes who's deciding how to respond, not the direction of the forces at play.

Have a great one! Poll below!👇

-John

Kevin Warsh is now Fed Chair. Are you optimistic about rates in the next 6 months?

Yes — I think cuts are coming

No — inflation kills that hope

Neutral — I focus on what I can control

Who is Kevin Warsh? 😅

1 vote

7:16

2 comments