Kevin Warsh has been appointed as the next Chair of the Federal Reserve, set to take over when the current chair’s term ends in May 2026. Warsh is a former Federal Reserve governor, financier, and lawyer with extensive experience in both Washington and Wall Street.
Warsh served on the Federal Reserve’s Board of Governors from 2006 to 2011 and was one of the youngest governors in recent central bank history, assuming the role at age 35. Born on April 13, 1970, in Albany, New York, he holds a bachelor’s degree in public policy from Stanford University and a Juris Doctor from Harvard Law School, along with additional studies at the Massachusetts Institute of Technology.
During the 2008 financial crisis, Warsh acted as the Federal Reserve’s primary liaison to Wall Street and represented the central bank at Group of 20 meetings. Prior to his tenure at the Fed, he worked in the White House as special assistant to the president for economic policy and as executive secretary of the National Economic Council under President George W. Bush.
At 55, Warsh brings significant expertise in monetary policy and financial markets. He is known for his cautious stance on prolonged ultra-easy central bank policies, which has led Wall Street to interpret his appointment as an indication that the Federal Reserve may be less inclined to implement rapid interest rate cuts. This view has alleviated some concerns about potential political interference affecting the Fed’s independence.
Following the announcement, markets reacted with the U.S. dollar strengthening by 0.4%, as traders anticipated a less accommodative monetary policy under Warsh. This shift put downward pressure on commodities priced in dollars. Gold prices fell approximately 4.6% to $5,130 per ounce on Friday morning, marking the largest single-day decline since mid-October. Silver experienced an even sharper drop of about 11%, reaching $103 and recording its worst session since August 2020. The Vanguard S&P 500 ETF traded 0.3% lower in premarket activity.
