Warsh Sworn In as Fed Chair, Lifting S&P 500 0.7% Midday

Markets gave Kevin Warsh a warmer welcome than recent predecessors on his May 22 swearing-in as Federal Reserve chair, sending the S&P 500 up about 0.7% in midday trading. The positive reaction follows two days of cautious positioning after his Senate confirmation, when the emerging “Warsh Trade” triggered a broad US dollar rally, higher Treasury yields, and pressure on risk assets. Historical context shows the S&P 500 has risen in six of nine Fed handovers since 1948, posting a median intraday gain of 0.2% and a median one-month advance of 3.2%, though three-month returns have averaged a 1.4% decline. Strategists caution that stubborn inflation, oil above $100, and questions over the Fed’s balance sheet could quickly complicate Warsh’s early tenure.