#WarshSwornInAsFedChair: Kevin Warsh Takes the Helm

On May 22, 2026, Kevin Warsh officially became the 17th Chair of the U.S. Federal Reserve, taking the oath of office during an historic White House ceremony in the East Room. Administered by Supreme Court Justice Clarence Thomas and attended by Justice Brett Kavanaugh, the event marked the first time a Fed chair was sworn in at the presidential residence since Alan Greenspan in 1987.

President Donald Trump, who nominated Warsh on March 4, 2026, used the moment to publicly demand that Warsh remain "totally independent". "Don't look at me, don't look at anybody, just do your own thing and do a great job," Trump said, while also criticizing the central bank for straying into issues like "climate policy and Diversity, Equity and Inclusion initiatives". Shortly after the ceremony, Trump delivered remarks vowing to get interest rates down "very quickly", a sentiment that has raised concerns about the central bank's political independence.

In his first official address, Warsh struck a reformist tone, vowing to lead a "reform-oriented Federal Reserve" that learns from past successes and mistakes. Citing the dual mandate of price stability and maximum employment, Warsh remarked that by pursuing these aims with "wisdom, clarity, independence and resolve," inflation could be brought lower and growth could be stronger. He also pledged to uphold clear standards of integrity and performance.

The transition has been marked by tension. Warsh succeeds Jerome Powell, a frequent target of Trump's ire for refusing to cut interest rates aggressively enough. Powell will remain on the Fed's board as a governor — a highly unusual decision marking the first time an outgoing chair has done so in nearly 80 years. Meanwhile, Governor Stephen Miran resigned from the board prior to Warsh's swearing-in to make room for him, and the Trump administration continues efforts to remove Governor Lisa Cook.

Warsh inherits a complex economic landscape. Inflation has run above the Fed's 2% target for five consecutive years and recently hit a three-year high of 3.8% annually, fueled in part by rising energy costs from the war in Iran. The Fed's policy rate currently sits at 3.50%–3.75%, and markets are pricing in a 96%+ probability of no rate cut at Warsh's first Federal Open Market Committee meeting on June 16-17, with some analysts even betting on a hike in 2027.

The confirmation process was contentious. The Senate approved Warsh on May 13 by a narrow 54-45 vote — the smallest margin for any Fed chair in history. Democratic Senator Elizabeth Warren had labeled him a "sock puppet" for Trump, a charge Warsh forcefully rejected by vowing to "absolutely not" be the president's puppet. He has since laid out ambitious reform goals, including shrinking the Fed's balance sheet, narrowing its mandate, and changing how it makes and communicates policy decisions.

As the central bank continues to grapple with inflation, the coming weeks will reveal whether Warsh will follow through on his reformist pledge or bend to political pressure for early rate cuts.

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