Kevin Warsh Confirmed as Fed Governor, Poised to Take Chair

The U.S. Senate has confirmed Kevin Warsh as a Federal Reserve Governor, setting the stage for a leadership transition. Warsh is expected to succeed Jerome Powell as Fed Chair, with a cloture vote scheduled for Wednesday, just ahead of Powell's term ending on Friday.

Warsh, who previously served as a Fed governor from 2006 to 2011, plans a significant policy shift. His agenda includes tighter coordination with the Treasury and a reduction of the Fed's balance sheet. Powell intends to remain as a governor, citing concerns over external pressures on the central bank's independence.

Prediction markets now price Warsh's confirmation as Chair by May 15 at 97.8% YES. The market for Powell being out as Chair by May 14 remains near zero at 0.7% YES, confirming the transition is seen as imminent with few procedural hurdles.