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2026-04-09 21:35:50
[White House Bets on Warsh to Take Over as Fed Chair in May, Powell's Future Remains Uncertain] ⑴ White House economic advisor Kevin Hassett said on Thursday that he is highly confident that Kevin Warsh will take over as Fed chair in May, and expects current chair Powell not to remain on the Fed Board of Governors. ⑵ Hassett revealed that Warsh's confirmation hearings are expected to begin next week, and said that Powell has given a clear signal that he will step down once the new chair is confirmed, a move seen as appropriate and in accordance with regulations. ⑶ However, Powell publicly stated in March that he would not leave the Fed until at least the criminal investigation against him is completed, and has not yet decided whether to continue serving his term on the Board of Governors, which expires in 2028. His term as Fed chair will expire in May. ⑷ A US judge last week upheld the ruling to freeze subpoenas related to the investigation, and the resulting appeals process could further delay the Trump administration's timeline for installing a more compliant central bank leader. (5) Analysts point out that the certainty and timing of the leadership transition at the Federal Reserve are crucial to market interest rate expectations. If Warsh takes over smoothly and Powell completely withdraws from the Board of Governors, the tone of monetary policy may undergo a subtle shift, while any delay in the legal process will prolong the wait-and-see period of the current policy framework.
