Warsh's Fed chair term brings new uncertainty for housing market

"Warsh previously served as a Fed governor from 2006 to 2011 and is currently a partner at Duquesne Family Office alongside Stanley Druckenmiller. He is also a visiting fellow in economics at Stanford University's Hoover Institution. Warsh still could face a tough Senate confirmation after the Justice Department issued grand jury subpoenas as part of a probe into Powell, sparking bipartisan criticism."

"In the past, he argued that inflation is a policy choice, was skeptical of quantitative easing and emphasized that the Fed's greatest asset is its credibility. But Banfield said that more recently, Warsh has softened his tone, suggesting that shrinking the Fed's balance sheet could allow policymakers to lower interest rates without reigniting inflation. He has also called for a broader regime change encompassing not only rates but also how the Fed communicates policy, exits emergency tools and restores credibility, Banfield added."

The FOMC lacks ideological unity, and newer rotating voters are likely to push back when incoming data do not support a specific policy path. The absence of a crisis reduces the chair's ability to accumulate outsized authority, making coalition-building harder and rendering a new Chair's power likely weaker, which could produce less clear guidance and noisier market signals. Warsh served as a Fed governor from 2006 to 2011, is a partner at Duquesne Family Office and a visiting fellow at Stanford's Hoover Institution. Warsh could face a contested Senate confirmation after Justice Department grand jury subpoenas tied to a probe of Powell. Warsh has held hawkish views historically but has recently signaled softer positions on balance-sheet reduction and called for broader changes in policy communication and exit strategies.

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