Powell's Final FOMC Meeting April 29 as Warsh Takes Over
Kevin Warsh will inherit a complex policy environment marked by sticky inflation, Middle East oil shocks, and a divided crypto market when he takes over from Federal Reserve Chair Jerome Powell after Powell's final FOMC meeting on April 29.
Key Takeaway
Warsh's hawkish history signals tighter Fed policy ahead for risk assets including crypto.
Federal Reserve Chair Jerome Powell chairs his final FOMC meeting on April 29.
Trump's Federal Reserve pick Kevin Warsh will inherit a complex policy environment marked by sticky inflation, Middle East oil shocks, and a divided crypto market. Warsh served as Federal Reserve Governor from 2006 to 2011 and dissented against some FOMC decisions during the 2008 financial crisis, advocating for earlier policy tightening.
Powell struck a mildly hawkish tone at the March FOMC meeting, with the average dot plot rising 5 basis points for 2026 forecasts as participants shifted toward fewer rate cuts. He told reporters that nobody knows the full effects or duration of the Middle East oil shock. Governor Miran dissented in favor of a rate cut at that meeting.
The Fed has cut rates three times in recent months: September brought a quarter-point cut to 4% to 4.25%, October's reduction came to 3.75% to 4% citing downside employment risks, and December marked the third quarter-point cut as labor markets cooled.
Warsh has been a vocal critic of prolonged easy monetary policy, positioning him as a potentially hawkish appointee under Trump. The FOMC's dual mandate requires achieving maximum employment and 2% inflation over the longer run, with Warsh's appointment effective immediately after Powell's April 29 meeting.
This article was written based on reporting from BeInCrypto.
