Overview
- Kevin Warsh remains President Trump’s nominee for Fed chair as Senator Thom Tillis threatens to hold all Fed confirmations until the DOJ probe into Jerome Powell concludes and Treasury Secretary Scott Bessent urges the Senate to begin hearings.
- Warsh’s push for a new Fed–Treasury accord has raised warnings that formal coordination could edge toward yield‑curve control by tying the Fed’s balance‑sheet plans to Treasury issuance and shifting holdings toward short‑dated bills.
- In a Feb. 5–10 Reuters survey, roughly three‑quarters of economists expect the Fed to hold rates through May and deliver the first cut in June, with more than 70% warning of a serious erosion of central bank independence after Powell’s term.
- Crypto markets have swung sharply since the nomination, with Bitcoin down over 20% and billions of dollars in leveraged long positions liquidated, reflecting heightened policy uncertainty.
- Trump has publicly claimed Warsh could help deliver 15% economic growth, signaling intense political expectations, while Warsh has talked of “regime change” at the Fed and criticized “deadwood,” indicating potential staff and cultural shifts.