---
title: "Warsh takes Fed helm with plan to slash $6.7T balance sheet"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286904184.md"
description: "Kevin Warsh has taken over as Fed chair from Jerome Powell, aiming to reduce the central bank's $6.7 trillion balance sheet. His hawkish stance may increase borrowing costs and impact high-valuation stocks, potentially conflicting with President Trump's desire for quick rate cuts amid existing FOMC divisions."
datetime: "2026-05-19T11:33:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286904184.md)
  - [en](https://longbridge.com/en/news/286904184.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286904184.md)
---

# Warsh takes Fed helm with plan to slash $6.7T balance sheet

Leadership change: Kevin Warsh succeeds Jerome Powell as Fed chair, bringing a hawkish policy stance and a goal to shrink the central bank's $6.7 trillion balance sheet. Market risks: Warsh’s plans could raise borrowing costs, pressure high-valuation stocks, and remove a safety net investors have relied on for 15 years. Political tensions: His approach may clash with President Trump’s push for rapid rate cuts, while FOMC divisions threaten policy cohesion.

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