Senate set to confirm Warsh as Fed chair as inflation pressures complicate rate-cut push

The U.S. Senate is expected to confirm Kevin Warsh as Federal Reserve chair on May 13, 2026, installing him as policymakers confront accelerating inflation and diminished market expectations for rate cuts sought by President Donald Trump. The vote is scheduled for 2 p.m. EDT after the Republican-majority Senate approved Warsh’s appointment to the Fed Board of Governors on May 12. Warsh would succeed Jerome Powell, whose chair term ends May 15, though Powell will remain a governor. Fed Governor Stephen Miran will leave the board to make room for Warsh. Warsh is expected to chair the Fed’s June 16-17 meeting. Producer prices rose 6% year over year in April, the fastest pace since December 2022, while analysts expect the PCE price index to rise 3.8%, above the Fed’s 2% target. Markets now expect no change to the Fed’s 3.5%-3.75% target range in 2026, with a potential rate hike as early as January 2027.