{"id":61902,"date":"2026-05-13T14:38:26","date_gmt":"2026-05-13T18:38:26","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/warsh-poised-for-fed-chair-confirmation-as-trump-lands-in-beijing-for-landmark-boeing-deal\/61902\/"},"modified":"2026-05-13T14:38:26","modified_gmt":"2026-05-13T18:38:26","slug":"warsh-poised-for-fed-chair-confirmation-as-trump-lands-in-beijing-for-landmark-boeing-deal","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/warsh-poised-for-fed-chair-confirmation-as-trump-lands-in-beijing-for-landmark-boeing-deal\/61902\/","title":{"rendered":"Warsh Poised for Fed Chair Confirmation as Trump Lands in Beijing for Landmark Boeing Deal"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Kevin Warsh is set for Senate confirmation as the next Federal Reserve Chair<\/strong>, succeeding Jerome Powell just days before Powell&#39;s term expires on Friday.<\/li>\n<li><strong>President Trump arrived in Beijing for a three-day summit<\/strong>, with markets anticipating a historic order of <strong>500 Boeing (<a href=\"\/stock\/BA\">BA<\/a>) aircraft<\/strong> and an extension of the current tariff truce.<\/li>\n<li><strong>Short seller Culper Research targeted Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong>, alleging the chipmaker is using illegal diversion networks to maintain <strong>20% of its revenue from China<\/strong> despite federal export bans.<\/li>\n<li><strong>JPMorgan (<a href=\"\/stock\/JPM\">JPM<\/a>) expanded its blockchain footprint<\/strong> by launching a second tokenized money market fund on <strong>Ethereum<\/strong>, designed to meet <strong>GENIUS Act<\/strong> stablecoin reserve standards.<\/li>\n<li><strong>The U.S. government is withholding $1.3 billion in Medicaid reimbursements from California<\/strong>, following a federal audit into the state&#39;s spending on non-emergency care for undocumented immigrants.<\/li>\n<\/ul>\n<h2>Warsh Confirmation and Fed Independence<\/h2>\n<p>The U.S. Senate is voting today to confirm <strong>Kevin Warsh<\/strong> as the next Chairman of the Federal Reserve. Warsh, a former Fed official, is expected to take the helm as <strong>Jerome Powell\u2019s<\/strong> term ends this Friday, May 15. The transition comes at a <em>fraught moment for the central bank<\/em>, which has faced unprecedented pressure from the White House to implement aggressive interest rate cuts.<\/p>\n<p>Critics, including Senator Elizabeth Warren, have raised concerns over the Fed&#39;s future independence, labeling Warsh a &quot;sock puppet&quot; for the administration. Outgoing Chair Powell recently noted that the institution is being &quot;battered&quot; by political considerations and legal investigations. Warsh has pledged to be an &quot;independent actor,&quot; though he has publically aligned with the President&#39;s view that current rates are too high.<\/p>\n<h2>Trump in Beijing: Trade and Geopolitics<\/h2>\n<p>President Trump landed in Beijing on Wednesday for a high-stakes state visit, his first since 2017. The summit with President Xi Jinping is expected to center on a massive trade package, including an order for <strong>500 Boeing (<a href=\"\/stock\/BA\">BA<\/a>) jets<\/strong>\u2014spanning <strong>737 MAX<\/strong> and widebody models. This deal would represent one of the largest commercial aircraft transactions in history and a significant win for the U.S. manufacturing sector.<\/p>\n<p>However, the &quot;Iran shock&quot; continues to loom over diplomatic efforts. Reports from the <em>New York Times<\/em> suggest that <strong>Chinese companies<\/strong> have been in secret talks regarding arms sales to Iran, potentially utilizing third-party countries to mask the origin of shipments. These allegations threaten to complicate negotiations over the extension of the <strong>October 2025 tariff truce<\/strong>, which currently governs trade on rare earth minerals and agricultural goods.<\/p>\n<h2>Nvidia Short Interest and AI Regulation<\/h2>\n<p><strong>Culper Research<\/strong> sent shockwaves through the tech sector by announcing a short position in <strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong>. The short seller alleges that Nvidia\u2019s China business did not go to &quot;zero&quot; as claimed, but instead persists through a network of Southeast Asian intermediaries. Culper specifically pointed to <strong>Megaspeed<\/strong>, a firm allegedly financed by <strong>Alibaba (<a href=\"\/stock\/BABA\">BABA<\/a>)<\/strong>, as a primary vehicle for diverting high-end GPUs into the Chinese market.<\/p>\n<p>Simultaneously, lawmakers are increasing scrutiny on the broader AI industry. Representatives Lawler and Gottheimer sent a formal inquiry to <strong>OpenAI<\/strong>, <strong>Google (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>)<\/strong>, <strong>Microsoft (<a href=\"\/stock\/MSFT\">MSFT<\/a>)<\/strong>, <strong>Meta (<a href=\"\/stock\/META\">META<\/a>)<\/strong>, and <strong>Perplexity AI<\/strong> regarding political bias in large language models. The letter demands transparency on how these platforms handle political questions and election-related content as the national election cycle intensifies.<\/p>\n<h2>Financial Innovation and Crypto Regulation<\/h2>\n<p><strong>JPMorgan (<a href=\"\/stock\/JPM\">JPM<\/a>)<\/strong> has filed for its second tokenized money market fund, <strong>JLTXX<\/strong>, which will operate on the <strong>Ethereum<\/strong> blockchain. This new fund is specifically engineered to comply with the <strong>GENIUS Act<\/strong>, a federal stablecoin framework signed into law in 2025. By investing exclusively in short-term U.S. Treasuries, JLTXX aims to serve as a primary reserve asset for the next generation of regulated stablecoins.<\/p>\n<p>In a boost for digital asset legislation, the <strong>AARP<\/strong> has officially endorsed the <strong>Digital Asset Market Clarity Act<\/strong>. The organization stated that the bill is a &quot;critical step&quot; in protecting older Americans from the rising tide of crypto-related fraud. The bill, which seeks to resolve jurisdictional disputes between the <strong>SEC<\/strong> and <strong>CFTC<\/strong>, is scheduled for a committee markup on Thursday.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Kevin Warsh is set for Senate confirmation as the next Federal Reserve Chair, succeeding Jerome Powell just days 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