Overview
- The Senate confirmed Kevin Warsh this week to replace Jerome Powell, with the handoff set for Friday after a contentious process that drew opposition from many Democrats.
- Powell will remain on the Fed’s Board of Governors as a voting member, saying he will stay to safeguard the central bank’s independence after the Justice Department dropped a criminal probe now referred to the Fed’s inspector general.
- A late‑April policy meeting produced four dissents, the most since 1992, exposing rifts over language that pointed to possible rate cuts after the committee held the benchmark at 3.5% to 3.75%.
- Warsh has signaled he wants freer debate and fewer scripted meetings, along with changes to how the Fed signals future moves and how it manages its large bond holdings.
- Markets assign very low odds to near‑term rate cuts as consumer prices rose about 3.8% in April, which could keep borrowing costs elevated for households and businesses even as leadership changes at the top.