Warsh's confirmation, Trump-Xi meeting, Cisco earnings and more in Morning Squawk

• Warsh received only 54 confirmation votes, the lowest for any Fed chair since 1977, with just one Democrat (Sen. Fetterman) supporting him; he has called for 'regime change' at the Fed and will succeed Jerome Powell
• Trump-Xi summit addressed Iran war, Taiwan (which Xi called 'the most important issue' in bilateral relations), and AI guardrails, with Treasury Secretary Bessent emphasizing the U.S. is not seeking confrontation
• Cisco beat earnings expectations and reported $5.3 billion in AI orders year-to-date, sending shares up 6%, while beer sales fell over 6% year-over-year amid rising gas prices from the Iran conflict

Market Summary: Warsh Confirmation, Trump-Xi Summit, and Tech Rally

Federal Reserve Leadership Change

Kevin Warsh confirmed as Federal Reserve Chair with just 54 Senate votes—the weakest support since the position required Senate approval in 1977. The 56-year-old former Fed governor, known for criticizing U.S. monetary policy and advocating "regime change" at the Fed, received support from only one Democrat (Sen. John Fetterman). The narrow margin signals potential challenges ahead as he navigates inflation pressures while President Trump pushes for rate cuts.

U.S.-China Relations

President Trump and Chinese President Xi Jinping met in Beijing to discuss the Iran war, economic cooperation, and Taiwan. Both leaders agreed on reopening the Strait of Hormuz, while Xi emphasized Taiwan as "the most important issue" in bilateral relations. Treasury Secretary Scott Bessent indicated the U.S. isn't competing militarily against China but seeks to establish AI best practices and guardrails.

Market Performance

Markets rallied despite mixed individual stock performance, with technology stocks driving gains. The index surged over 1% to a record high, even as investors overlooked April's hotter-than-expected inflation data showing 1.4% monthly and 6% annual increases—the largest since 2022. Futures indicated the market is poised to retake 50,000.

Corporate Highlights

Cisco exceeded earnings expectations, reporting $5.3 billion in AI orders year-to-date with strong forward guidance, sending shares higher. The data center stock is gaining Wall Street favor after previous underperformance.

Consumer Trends

U.S. beer volumes declined over 6% year-over-year in the week ending May 2, with analysts attributing the pullback to rising gas prices from the Iran war. California experienced a 16% volume deceleration over four weeks.