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Senate Confirms Kevin Warsh, Pushes Lower Reserve Yields

6/13/2026

24 2 Full Breakdown

Summary

Warsh Leads Fed

The U.S. Senate confirmed Kevin Warsh as Federal Reserve (Fed) chair, tasking him with leading the June 16-17, 2026 FOMC meeting.
Warsh says the Fed should rely on trimmed inflation data showing a 2.3% rise versus a 3.8% overall PCE increase in April 2026.
He criticizes the $3.1 trillion of reserves earning 3.65% interest and proposes making them less profitable to push banks into Treasury purchases that could lower yields.

Summary

Warsh Becomes Chairman

Kevin Warsh (Federal Reserve (Fed) chairman) was sworn in on Tuesday, April 21, 2026.
The Fed website now lists Warsh as chairman, ending twelve-year use of “chair” by Janet Yellen and Jerome Powell.
The Federal Reserve Act names a chairman, yet Republican members and most Senate and House committee sites still use “chairman,” reflecting partisan pushback after Speaker Nancy Pelosi’s 2021 gender-neutral rule.

History

Historical Context

In 1979 President Jimmy Carter nominated Paul Volcker as Fed chairman, shortly after the 1978 Humphrey-Hawkins Act mandated regular congressional reporting. Volcker’s “Volcker shock” lifted the federal funds rate to a 20 % peak in June 1981 and cut inflation from a 14.8 % March 1980 high to below 3 % by 1983. Senate-confirmed Kevin Warsh now proposes lowering the reserve-interest rate from 3.65 % to 3.1 %, echoing that aggressive stance.

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Warsh Leads Fed

The U.S. Senate confirmed Kevin Warsh as Federal Reserve (Fed) chair, tasking him with leading the June 16-17, 2026 FOMC meeting.
Warsh says the Fed should rely on trimmed inflation data showing a 2.3% rise versus a 3.8% overall PCE increase in April 2026.
He criticizes the $3.1 trillion of reserves earning 3.65% interest and proposes making them less profitable to push banks into Treasury purchases that could lower yields.

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