What to expect from a Warsh-led Fed | Making Sense | J.P.Morgan

00:00:04 | Institutional Transition & Leadership Profile

• The Transition: On the morning of May 22, 2026, Kevin Warsh was officially sworn in as the 17th Chair of the U.S. Federal Reserve, concluding Jerome Powell's 8-year tenure at the helm of the central bank.
• The Powell Variable: In an unusual structural arrangement, former Chair Jerome Powell will remain on the Federal Reserve Board of Governors after his term as chair expires.
• The Philosophical Ambiguity: J.P. Morgan's Chief U.S. Economist, Michael Feroli, notes that Warsh's policy bias presents a historical paradox. During his initial stint as a Fed Governor from 2006 to 2011, Warsh was widely perceived as distinctly hawkish. Conversely, during his public campaign leading up to his selection as Fed Chair, his rhetoric shifted significantly in a dovish direction. J.P. Morgan concludes that his true policy baseline remains an open question that will only be resolved over the coming quarters.