Analysts at Danske Bank discuss the US political risks associated with the leadership of the Federal Reserve (Fed), noting that Kevin Warsh’s Senate confirmation hearing as part of his confirmation process as Fed Chair is scheduled for April 21. They highlight Senator Tillis’ opposition to a Powell investigation, Polymarket’s roughly 60 percent confirmation probability, and the possibility that Miran could become acting chairman if Warsh is not confirmed before May.
Warsh Hearing and Succession Scenarios
“In the US, Kevin Warsh’s Senate hearing is scheduled for April 21.”
“While the hearing is an important step toward confirmation as Fed Chair, the sticking point remains Republican Senator Tillis’ reluctance to vote for his approval while an ongoing criminal investigation into Powell over cost overruns at the Fed headquarters continues.”
“Polymarket sees about a 60% chance that Kevin Warsh will be confirmed before Powell’s term ends in May.”
“If Warsh is not confirmed by then, Miran could be named acting Fed Chair, while Powell could continue to serve as FOMC Chair, as his Board of Governors position runs through 2028.”
(This article was created using an artificial intelligence tool and reviewed by an editor.)
