Trump Finally OUSTS Enemy — Or Did He?

President Donald Trump — TRUMP OUSTS THE ENEMY?

Trump’s Senate victory installs Kevin Warsh as Federal Reserve chair, but Jerome Powell’s lingering presence on the Board threatens immediate policy chaos.

Story Snapshot

Senate confirms Warsh as Fed chair on May 13, 2026, in 54-45 vote after 51-45 Board approval on May 12.
Warsh sworn in May 15, replacing Powell amid three-year high inflation and Trump’s rate-cut demands.
Powell stays on Board until 2028, pledging low profile pending HQ renovation investigations.
Party-line votes signal deep polarization; Warsh vows independence despite Trump alliance.

Senate Fast-Tracks Warsh’s Dual Confirmations

U.S. Senate Republicans pushed Kevin Warsh through confirmation as Fed Board Governor on May 12 in a 51-45 party-line vote for a 14-year term. Democrats opposed, citing risks to Fed independence.

The next day, May 13, senators approved Warsh as chair in a 54-45 tally. President Trump nominated the former governor of 2006-2011 after his 2024 election win, targeting Powell’s reluctance to pursue rapid rate cuts. Swearing-in is scheduled for May 15 as Powell’s chair term expires.

Senate confirms Trump pick Warsh as chairman of the Federal Reserve, following Powell https://t.co/DO1hWHX8Gy

— The Baltimore Banner (@BaltimoreBanner) May 13, 2026

Powell’s Shadow Looms Over New Leadership

Jerome Powell exits as chair but retains Board seat until 2028. On April 29, he stated, “There is only ever one chair… Kevin Warsh will be that chair,” conditioned on HQ renovation probes.

This setup invites friction. Historical precedents, such as Janet Yellen’s 2018 post-term role, show chairs influencing from the sidelines. Trump’s past attacks on Powell as an “enemy” resurface, raising questions about a smooth transition amid undefined investigations.

Trump’s Economic Vision Takes Center Stage

Trump criticized Powell for slow rate cuts during three years of inflation above 3%. Warsh aligns with Trump’s “America First” push for looser policy, deregulation, and growth.

A former Goldman Sachs executive, Warsh dissented on the 2011 QE2, blending hawkish inflation views with pro-growth leanings. His 14-year term locks in long-term influence, contrasting Powell’s crisis management through COVID and inflation battles.

Senate dynamics revealed GOP unity enabling the fast-track, while Democrats warned of politicization, echoing Trump’s 2018-2019 Fed pressures. Warsh’s prior 2017 withdrawal as Trump’s pick adds irony to this second chance.

Senate confirms Trump pick Warsh as chairman of the Federal Reserve, following Powell https://t.co/nimoxCsN7u

— ABC11 EyewitnessNews (@ABC11_WTVD) May 14, 2026

Rate Decisions Demand FOMC Consensus

Warsh cannot unilaterally slash rates. The Federal Open Market Committee requires consensus among governors and presidents. Experts predict steady rates in the short term due to fears of war with Iran, stubborn inflation, and divided members.

Warsh favors “messier meetings” with diverse views. His past support for cuts and AI-driven productivity optimism hints at a dovish tilt, but building alliances proves challenging in an uncertain economy.

Market Ripples and Political Stakes

Short-term, anticipated cuts boost stocks and crypto, aiding borrowers but risking inflation spikes for wage earners. In the long term, Warsh’s tenure aligns the Fed with Trump’s tax cuts and tariffs, eroding the perception of independence.

Crypto sectors cheer dovish signals. Politically, success bolsters Trump’s chances in the 2026 midterms; failure deepens divides. Global banks, including the ECB, monitor U.S. volatility. Powell’s presence may gridlock policy, testing Warsh’s authority from day one.