Senate confirms Kevin Warsh as Fed chair as inflation, market pressure test policy path

The U.S. Senate confirmed former Federal Reserve Gov. Kevin Warsh as Fed chair on May 13, 2026, in a 54-45 vote, setting him up to succeed Jerome Powell after Powell’s term ends May 15, 2026. Warsh takes over as April CPI data show persistent inflation and rising energy prices tied to the Iran conflict have reduced expectations for rate cuts. Markets are focused on whether Warsh will preserve Fed independence under pressure from the Trump administration to ease policy. Rate markets have largely priced out 2026 rate cuts and are reflecting about a 30% chance of a rate increase, according to the report. Warsh has argued AI-driven productivity gains could lower inflation and justify easier policy, a view disputed by some former officials including Janet Yellen. He also favors Fed reforms, including a smaller balance sheet, now at $6.7 trillion, and possible changes to communications such as fewer news conferences or ending the quarterly dot plot.