Kevin Warsh will be sworn in as the new chair of the US Federal Reserve Board of Governors on Friday, succeeding Jerome Powell. His confirmation by the Senate was largely along party lines, reflecting the political tensions surrounding monetary policy. Warsh steps into this role during a period of drastically reduced expectations for interest rate cuts, with prediction markets indicating only a 38.2% chance of cuts before the end of 2026, a significant drop from 96% in February. Current data from CME FedWatch shows a 98.8% probability that the Fed will keep its benchmark rate unchanged at 3.50% to 3.75% through June. This shift in market sentiment is attributed to rising inflation pressures, including hot Consumer Price Index (CPI) and Producer Price Index (PPI) figures, as well as geopolitical tensions affecting oil prices. President Trump has publicly pressured the Fed for rate cuts, but Warsh is perceived as more hawkish on inflation than Powell, complicating the alignment between presidential demands and market realities. Additionally, Warsh's substantial investments in AI and cryptocurrency have raised concerns about potential conflicts of interest. As he prepares for his first Federal Open Market Committee meeting on June 16, the financial landscape remains uncertain, particularly for cryptocurrency markets, which may face headwinds due to Warsh's inflation stance.