Hassett: Warsh Ready to Take Office in May, Powell in Danger of Leaving
White House economic adviser Kevin Hassett said he believes Kevin Warsh will take office as Federal Reserve chairman in May, and he does not expect current Fed Chairman Jerome Powell to remain on the board of governors. Hassett told Fox Business Network that he is “very confident” that process will happen, and that Warsh’s confirmation hearing is on track to begin next week.
Hassett also said Powell has signaled he will step down once the new chairman is confirmed. The statement adds to market scrutiny of the central bank’s leadership transition, especially since Powell’s term as chairman ends in May.
However, Powell said in March that he would not leave the Fed until at least the criminal investigation led by U.S. Attorney Jeanine Pirro is completed, and he has not yet decided whether to remain as Fed chairman, whose term runs through 2028. Last week, a U.S. judge upheld a block on subpoenas issued in that investigation, opening the door to an appeal that could prolong the process and potentially delay the leadership change sought by President Donald Trump.
For the market, this series of comments underscores the institutional uncertainty heading into May: not just about who will lead, but also how the board's composition and the dynamics of the legal process could impact expectations of independence and the direction of monetary policy. Future variables to monitor include the schedule and outcome of Warsh's confirmation hearing, Powell's stance on the chairmanship, developments in the appeal of the court decision, and policy signals from Fed officials ahead of the chairmanship change.
Source: Newsmaker.id
