Overview
- President Donald Trump has nominated Kevin Warsh to succeed Jerome Powell in May, with Senate confirmation now the key step.
- Analysts highlight a mixed policy record, with Warsh advocating significant balance‑sheet reduction while signaling conditional openness to rate cuts.
- The Justice Department’s criminal probe into the Fed and Powell over headquarters cost overruns has intensified concerns about political pressure on the central bank.
- Economists caution that mortgage rates, which largely follow 10‑year Treasury yields, are unlikely to drop substantially this year despite leadership changes.
- Leadership contingencies include the possibility of Powell remaining on the Board as a counterweight and Michelle Bowman serving as interim chair if confirmation is delayed.