Senate set to vote on Kevin Warsh as Federal Reserve chair
Updated
Updated · Kraken Blog · May 6
Senate set to vote on Kevin Warsh as Federal Reserve chair
16 articles · Updated · Kraken Blog · May 6
The vote is expected in the week of May 11 after a 13-11 party-line Banking Committee approval on April 29, with Jerome Powell’s term ending on May 15.
Warsh told lawmakers he would scale back Fed communications, reduce forward guidance and may stop holding press conferences after every policy meeting, potentially changing how markets interpret rate signals.
The shift comes before key US jobs and inflation data and ahead of the June 16-17 FOMC meeting, which could be the first chaired by Warsh if he is confirmed.
With the Fed poised to speak less, how will markets adapt to a new era of central bank silence?
Can Kevin Warsh successfully remake Fed policy while also overseeing its largest internal modernization in decades?
Will new stablecoin rules finally insulate Coinbase's business from the wild swings of the crypto market?
Kevin Warsh's Partisan Fed Nomination and "Regime Change" Policy Threaten Market Stability and Central Bank Independence
Overview
In early May 2026, the Senate Banking Committee advanced Kevin Warsh's nomination to lead the Federal Reserve along strict party lines, following the DOJ's conditional closure of the investigation into Jerome Powell, which led Republican Senator Thom Tillis to drop his opposition. Warsh proposes a major policy shift, including shrinking the Fed's $6.7 trillion balance sheet, reducing communication, and eliminating the dot plot, which risks higher market volatility and confusion. Meanwhile, persistent inflation driven by the U.S.-Iran conflict has caused dissent within the Fed and shifted markets to expect rate hikes. Powell remains on the Fed Board post-term, creating a complex leadership dynamic as Warsh faces intense political pressure that threatens the Fed's independence and credibility.