Kevin Warsh Confirmed as Fed Chair, Powell Steps Down
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- Kevin M. Warsh was confirmed by Senate Republicans as the next Federal Reserve chair, succeeding Jerome H. Powell whose term ends on Friday.
- Jerome H. Powell will remain on the Board of Governors as one of seven members after stepping down as chair, a move he made to protect the Fed’s independence.
- Kevin M. Warsh argued that the Fed’s post‑COVID policies caused the worst inflation shock in four decades, distorted global asset pricing, and overstepped its congressional mandate, prompting his call for “regime change.”
- President Trump and Senate Republicans supported Warsh’s “regime change” agenda, criticizing the Fed for refusing to cut rates and for perceived politicization.
- Jerome H. Powell is credited by analysts with navigating the Fed through multiple shocks, quickly adjusting rates in both directions, and building consensus within the Federal Open Market Committee.
Why it matters: Trump and Senate Republicans gain a Fed chair aligned with their agenda, while the Fed’s independence faces further encroachments; Powell’s eight‑year tenure ends Friday, reshaping leadership and market expectations.
