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Tillis Backs Warsh Confirmation, Fed Independence Emphasized

4/29/2026

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Summary

Warsh Confirmation

Senator Thom Tillis (R-N.C.) will vote to confirm Kevin Warsh as Federal Reserve (Fed) chair, ending his hold.
The Senate Banking Committee will hold a markup on Wednesday at 10 a.m. EDT (1400 GMT).
Warsh told senators he will not bend policy to White House demands, pledging Fed independence.
If confirmed, Warsh could preside over the June FOMC meeting, with Powell’s term ending May 15 and markets pricing an easing path.

Summary

Powell Stays

Fed Chair Jerome Powell may stay on the Federal Reserve Board after his term ends on May 15, 2026.
Fed official Warsh says the $6.7 trillion balance sheet on April 22, 2026, down from $9 trillion in 2022, is “bloated” and plans reductions could lift bond yields.
Inflation rose to 3.3%, a high, driven by higher gas prices from the Iran war, while analysts warn the chair-and-former-chair pairing could create a “two Popes” dynamic.

History

Historical Context

When President Jimmy Carter nominated Paul Volcker on July 25 1979, the Senate confirmed him on August 2, and he raised the federal-funds rate to a 20 % peak in June 1981, cutting inflation from a 14.8 % high in March 1980 to below 3 % by 1983. Today, the Senate’s debate over Kevin Warsh’s confirmation revives those 1980s concerns about Fed independence and aggressive rate policy.

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Warsh Confirmation

Senator Thom Tillis (R-N.C.) will vote to confirm Kevin Warsh as Federal Reserve (Fed) chair, ending his hold.
The Senate Banking Committee will hold a markup on Wednesday at 10 a.m. EDT (1400 GMT).
Warsh told senators he will not bend policy to White House demands, pledging Fed independence.
If confirmed, Warsh could preside over the June FOMC meeting, with Powell’s term ending May 15 and markets pricing an easing path.

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