Kevin Warsh was confirmed by the Senate on May 13 as the new chair of the Federal Reserve, replacing Jerome Powell. Warsh previously served as a Fed governor from 2006 to 2011 and will now lead the central bank during a period of ongoing inflation concerns, economic uncertainty, and debate over future interest rate policy.

While the President has pushed for lower rates, the Fed has so far kept rates steady this year after several cuts in late 2025. Some Fed officials have warned that rising inflation and higher energy prices could still require tighter policy if inflation does not continue easing.

For interest rates, Warsh’s leadership adds uncertainty to the outlook. The Fed chair does not set rates alone, but markets will closely watch whether the Fed becomes more supportive of future rate cuts or remains cautious about inflation. If inflation continues to cool, mortgage rates could gradually move lower later this year. However, persistent inflation or rising energy costs could keep rates elevated longer.