On May 13, 2026, the U.S. Senate officially confirmed Kevin Warsh as Chair of the Federal Reserve by a vote of 54 to 45, succeeding Jerome Powell, who steps down on May 15. Warsh will officially take office on May 16 after completing White House signing procedures. This vote marks the most partisan split in the history of Fed Chair nominations, reflecting sharp bipartisan divisions over inflation and monetary policy paths. Widely regarded by markets as a “hawk among hawks,” Warsh has long advocated a tough stance against inflation. He has repeatedly criticized former Chair Powell’s policies as “excessively accommodative” and insists on prioritizing price stability below 2%, even at the cost of a short-term economic recession. Expectations of his tenure have triggered violent reactions in financial markets: the U.S. Dollar Index rose to a two-week high, 10-year U.S. Treasury yields topped 4.5%, U.S. stocks pulled back with the Nasdaq falling from its record high, and gold plunged below $4,700 per ounce. Market expectations for Fed rate hikes surged, with the probability of a June hike rising to 65%. Analysts believe Warsh’s appointment will lead to a full hawkish shift in Fed policy, intensifying global capital flight to the U.S. and risks of currency depreciation and debt defaults in emerging markets.