Senate Expected to Confirm Kevin Warsh as Federal Reserve Chair

U.S. Senate is expected to confirm Kevin Warsh as the next chair of the Federal Reserve this week, according to The Guardian. Warsh would replace outgoing Fed Chair Jerome Powell at a time when President Donald Trump has continued criticizing the central bank for keeping interest rates elevated.

Democrats have criticized Warsh as too closely aligned with Trump after the nominee publicly backed the president's view that rates are too high. In Senate testimony, Warsh said he would act independently. " Trump's conflict with Powell escalated in recent months after the Trump administration backed a criminal investigation into renovation costs at the Fed's headquarters.

Trump joked last month that he would "cut the Oval Office in half" to give Warsh workspace inside the White House. The jest underscored the unusually close relationship between the president and his nominee for the world's most powerful economic post. Warsh has already signaled he may pursue major changes to how the Federal Reserve operates.

He wants to replace core PCE, the Fed's preferred inflation gauge for nearly two decades, with trimmed-mean and median PCE measures produced by regional Fed banks. 0% in February. 3%.

Warsh has criticized forward guidance. He has questioned the Fed's communication framework and called for faster balance-sheet reductions. Benzinga reported that financial disclosures showed Warsh holds stakes tied to SpaceX.

The same filings showed stakes tied to Polymarket and crypto-related assets linked to Bitcoin (BTC) and Solana (SOL). Some investors worry a more dovish Fed under Warsh could damage the central bank's credibility if inflation remains elevated. Ray Dalio warned that cutting rates during stagflationary conditions could undermine confidence in the Fed.