BlockBeats News, May 15th, The New York Times reported that Federal Reserve Chairman Jerome Powell is about to step down and will be succeeded by Kevin Warsh. This personnel change is seen by the public as the "repricing stage" of the U.S. monetary policy system.

Warsh has proposed structural reforms to the Federal Reserve before taking office, including reassessing the inflation model, reducing the size of the balance sheet, decreasing the frequency of forward guidance usage, and strengthening coordination with the Treasury Department on government bond asset allocation. He has also criticized the Fed for "mission creep" and excessive market intervention in recent years.

The report pointed out that Powell's tenure has seen multiple challenges, including the extremely accommodative policy during the pandemic, followed by the highest inflation in forty years, and a tightening cycle starting in 2022 that saw 11 consecutive rate hikes to a range of 5.25%-5.5%. Despite the controversial policy process, his later tenure successfully managed to lower inflation without causing a recession, which is seen as a significant policy achievement.

Warsh's reform proposals have sparked debate on Wall Street and in academia. Some former officials believe that the Fed needs to optimize its forecasting models and communication mechanisms, while others think that external political pressure is itself eroding central bank independence and could pose greater systemic risks.

The market is eagerly awaiting Warsh's first interest rate decision meeting after taking office. Currently, most officials lack support for a rate cut, and some are even discussing the possibility of further rate hikes, putting the new chairman in a direct conflict between policy direction and political expectations.

Analysts believe that this transfer of power is not just a personnel change but may also affect the U.S. interest rate path and the global financial pricing mechanism for the coming years.