CRE Industry Awaits Warsh’s Fed Policies After Senate Approval

The commercial real estate industry will now be closely monitoring every word of Kevin Warsh.

The U.S. Senate approved Warsh’s nomination as the next Federal Reserve chair Wednesday in a 54-to-46 vote nearly completely along party lines. Warsh’s confirmation comes three and a half months after President Donald Trump nominated the former Fed governor to replace Jerome Powell to lead the central bank. 

While Warsh in his confirmation hearings stressed a commitment to maintain Fed independence from White House influence, he assumes leadership of the central bank amid Trump pushing hard for lower interest rates. The Fed paused interest rates in the final three Federal Open Market Committee meetings led by Powell after enacting a trio of cuts to close 2025.

“Federal Reserve policy has a significant and direct impact on commercial real estate finance, influencing interest rates, liquidity, prudential standards for lenders  and the availability of capital across CRE lending and securitization markets,” Lisa Pendergast, president and CEO of the CRE Finance Council, said in a statement following Warsh’s confirmation approval. “We look forward to working with him and policymakers to advance policies that promote a resilient and healthy commercial real estate finance system.”

Powell, whom Trump nominated in late 2027, said following the last FOMC meeting on April 29 that he would remain with the Fed as a governor, a rare move for an outgoing Fed chair. Powell’s term as governor runs until January 2028, and he said he would stay “for a period of time to be determined” in a “low-profile” role until the conclusion of a federal investigation related to renovations at the Fed’s Washington, D.C., offices. 

Bob Broeksmit, president and CEO of the Mortgage Bankers Association, praised the approval of Warsh, saying he has the background needed to address issues of importance to CRE including the Fed’s proposals for new bank capital requirements on CRE loans.

“His experience in financial markets and thoughtful approach to monetary policy will serve the country well during this pivotal period for the economy,” Broeksmit said in a statement. “We look forward to continued engagement on policies affecting the banking and housing finance systems and will continue advocating for a more balanced and risk-aligned approach to capital standards affecting mortgage lending and commercial real estate finance.”

Andrew Coen can be reached at acoen@commercialobserver.com.