Kevin Warsh was sworn in as the new chairman of the Federal Reserve on Friday, May 22, 2026, replacing Jerome Powell in a White House ceremony. President Donald Trump emphasized Warsh's independence, urging him to ignore political pressure on interest rates. Warsh vowed to lead a 'reform-oriented' Fed, emphasizing lower inflation, stronger growth, and higher real take-home pay. Trump praised Warsh's qualifications and stressed the importance of economic prosperity without stifling growth. Supreme Court Justice Clarence Thomas administered the oath, and the event was attended by other justices, lawmakers, and business leaders.
Warsh's Reform Agenda
Warsh outlined his vision for the Fed, calling for a balance between learning from past successes and mistakes while avoiding rigid frameworks. He emphasized the Fed's mandate to promote price stability and maximum employment, stating that with 'wisdom and clarity, independence and resolve,' the Fed could achieve lower inflation, stronger growth, and greater prosperity.
Trump's Role and Past Criticisms
Trump has been vocal about his desire for lower interest rates, previously criticizing Powell for being too slow to cut rates. He has even pursued legal action against Powell over the Fed's headquarters renovation. Despite this, Trump insisted on Friday that he wanted Warsh to operate independently, saying, 'I want Kevin to be totally independent... Don't look at me, don't look at anybody. Just do your own thing and do a great job.'
Broader Implications
The Supreme Court is set to rule on Trump's attempt to fire Fed Governor Lisa Cook, adding another layer of complexity to the Fed's independence. Warsh's appointment comes as the U.S. faces inflation at a three-year high, and his stance on rate cuts remains a key focus. The ceremony highlighted the intersection of political and economic pressures on the central bank.