Kevin Warsh has been sworn in as chair of the United States Federal Reserve Board of Governors, taking over the role from Jerome Powell, who led the central bank since 2018. Warsh, 56, assumed the post on Friday after a contentious confirmation process that saw Senate votes largely fall along party lines; Pennsylvania Senator John Fetterman was the only Democrat to break with his colleagues to advance Warsh’s nomination.
The appointment comes as the Fed’s long-standing independence faces heightened scrutiny amid political pressure from the White House. President Donald Trump, speaking at the swearing-in, said he wanted Warsh to act independently and “do your own job,” signaling a public desire for distance even as the administration has pushed for rate cuts.
During his Senate confirmation hearing, Democratic Senator Elizabeth Warren accused Warsh of being a “sock puppet” for the president. Warsh rejected that allegation, pledging to preserve independence in monetary policy. Observers note that Warsh’s public positions have shifted in recent years: he opposed rate cuts when Joe Biden was president but aligned more closely with calls for easing policy after Trump took office. In December 2025, Trump had said he would appoint only a Fed leader who agreed with him on lowering interest rates.
Despite expectations and political pressure, Warsh will be one of 12 voting members on the Federal Open Market Committee and cannot set policy on his own. The first policy meeting he will chair is scheduled for June 16–17.
Inflation and the policy outlook
Calls from the White House to reduce borrowing costs arrive as inflation in the US has picked up. The Labor Department’s Consumer Price Index showed consumer prices rose 0.6 percent in April following a 0.9 percent increase in March. On an annual basis, prices were 3.8 percent higher than a year earlier, the largest year-on-year gain in three years. Energy costs have been a major driver, up 17.9 percent over the last year.
Higher fuel prices are hitting consumers: the American Automobile Association reported the national average price for a gallon of gasoline at $4.56, up from $2.98 at the end of February after the US and Israel struck Iran. Those increases are one reason some policymakers and analysts see less room for immediate rate cuts.
After taking office, Warsh said he was “not naive” about the challenges facing the US economy and expressed confidence that inflation could be reduced while growth remained healthy. But several forecasters remain cautious: JPMorgan Chase analysts have projected that interest rates will probably stay on hold until mid-2027 and may even rise rather than fall.
Minutes from the Fed’s April policy meeting warned staff saw a meaningful risk that inflation could prove more persistent than expected, citing factors including the Middle East conflict and emerging price pressures in certain categories. Market-based tools reflect those expectations: CME Group’s FedWatch indicated about a 97 percent chance that the Fed will keep rates unchanged at its next policy meeting.
Warsh steps into the role amid those competing pressures — political calls for easing and economic signals that argue for caution — and must navigate both as he leads the Fed into its next policy decisions.