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Kevin Warsh Takes the Fed Helm in a Bond Market Revolt
Description
On May 19, 2026, Kevin Warsh prepares to be sworn in as Federal Reserve chair on Friday, inheriting a central bank under siege from bond vigilantes. With the ten-year Treasury yield at 4.66 percent, up 4.1 percent in just five days, and inflation projected to hit 6 percent in Q2, markets are pricing in a rate hike as early as July. Lucas and Luna break down what Warsh's appointment means for monetary policy, why the bond market is forcing the Fed's hand, and how the new chair's past at the Fed and on Wall Street shapes his approach. They discuss the April CPI reading of 332.4 — up from 330.29 — and what it signals about sticky inflation. This episode of The Federal Reserve Podcast with Fexingo launches with a deep dive into the most consequential Fed transition in a decade, asking whether Warsh can restore credibility before the vigilantes force a policy error.