On May 13, 2026, the U.S. Senate confirmed Kevin Warsh as the next chairman of the Federal Reserve. The 54-45 vote, mostly along party lines, marks the return of Warsh to the Fed where he previously served on the Board of Governors from 2006 to 2011. Warsh will replace the current chair Jerome Powell, he has led the Federal Reserve since 2018.
Previous to his new position, Warsh served as the Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution at Stanford University. He was also a lecturer at the Stanford Graduate School of Business. Many housing economists predict the next action from the Fed might be a rate hike instead of a cut.
“A Warsh-led Fed matters for housing less because of where rates are today and more because of how policy is communicated going forward,” said Cotality Chief Economist Dr. Selma Hepp. “For housing, that likely means fewer sharp policy pivots but a longer period of rate uncertainty. Current assessment is that Warsh could lean modestly more dovish over time — anchored by productivity optimism — offers some hope that policy won’t remain overly restrictive if inflation continues to cool. However, his skepticism of an oversized balance sheet and openness to rethinking Fed communication tools could keep mortgage rates volatile even if the policy rate trends lower. The risk for housing is that affordability remains trapped: rates may ease only gradually while prices stay elevated due to limited supply. The opportunity, if Warsh succeeds in restoring Fed credibility, is a steadier long‑term financing environment that allows builders, lenders and buyers to plan with greater confidence.”
