Jerome Powell's term as chair of the Federal Reserve expired on May 15, ending a tenure that spanned a pandemic, the sharpest inflation episode in four decades and a political assault on the institution from both parties at different moments.
Kevin Warsh, confirmed by the Senate after contentious hearings in the spring, took office the same day. Warsh arrived promising to restore what he has called the Fed's primary mandate discipline, a posture markets interpreted as hawkish even before the first policy meeting under his leadership.
What Changes, What Doesn't
The rate-setting committee's membership did not transform overnight, but the chair sets the agenda, drafts the forecasts' framing and speaks for the institution. Warsh's early communications have leaned hard on inflation persistence, a shift from Powell's final months.
By the time Warsh chaired his first full policy meeting, the war in Iran had already pushed energy costs higher and the bond market had moved the 10-year yield above 5%. The new chair inherits a debate that was already tilted against the doves.
