Kevin Warsh Sworn In as Federal Reserve Chair as Trump Pushes for Rate Independence
Kevin Warsh was sworn in as the new Federal Reserve chair on May 22, 2026, taking the helm of the central bank amid inflation pressures and geopolitical uncertainty from the Iran conflict.
Fed Leadership Changes Hands
President Donald Trump led a ceremony swearing in Kevin Warsh as chair of the Federal Reserve, putting him in charge of a central bank that must navigate a tumultuous economy and a president with very specific expectations on interest rates.
Independence and Expectations
Trump, whose actions toward the Fed have spurred bipartisan alarms about executive influence on the historically independent central bank, said he wanted Warsh to "just do your own thing and do a great job," adding "I want Kevin to be totally independent. Don't look at me, don't look at anybody."
Economic Headwinds
The new Fed chair inherits an economy where the central bank has agreed to pause in rate cuts, and future policy moves would be dependent on if inflation decreases or if there is a drop in the labor market. Headline inflation increased due to the rise in energy prices with PCE at 3.5% YoY in March, while core measures of inflation remain somewhat elevated above the two-percent target, with a substantial wedge opened between core PCE at 3.2% YoY and core CPI at 2.6% YoY.