Kevin Warsh officially took office as the chair of the Federal Reserve on Friday, May 22, 2026, succeeding Jerome Powell. The swearing-in ceremony, presided over by President Trump, took place at the White House. Warsh's term as chair will last four years. He was confirmed by the Senate on May 13.
Warsh, 56, assumes leadership of the central bank during a period of heightened focus on monetary policy and persistent inflation pressures. Financial markets are keenly observing his approach, particularly given concerns about the Fed's independence. During his confirmation hearing, Senator Elizabeth Warren raised concerns that Warsh could be a "sock puppet" for President Trump. Warsh refuted this allegation and pledged to maintain independence in his monetary policy decisions. President Trump stated that he expects Warsh to be "totally independent".
Prior to this appointment, Warsh served as a Fed governor from 2011 to 2016. He has previously criticized the Fed’s monetary policy, arguing that low interest rates could spur inflation. However, he recently expressed support for lower rates, suggesting that artificial intelligence could curb inflation and boost productivity.
Warsh's appointment has garnered mixed reactions. Some economists, like Canadian Prime Minister Mark Carney, have praised Warsh as a "fantastic choice". Others are more cautious, emphasizing the need for the Fed to maintain its independence amidst political pressure. Powell will remain on the Fed's Board of Governors.
