Kevin Warsh Sworn In as Fed Chair, Vows Independence

Kevin Warsh took the oath of office as chair of the Federal Reserve on May 22, 2026, after the Federal Open Market Committee selected him unanimously. He pledged to serve as a “strictly independent” chair following a 54–45 Senate confirmation vote.

President Donald Trump nominated Warsh on March 4, 2026. The Senate approval was the narrowest margin for a Fed chair in U.S. history. Warsh’s term as chair runs through May 2030; his seat on the Board of Governors extends to January 2040. Jerome Powell will remain on the board after stepping down as chair.

The Fed left its target policy rate at 3.50%–3.75% at its most recent meeting. U.S. producer prices rose 6% in April. Investors and policymakers are watching inflation readings and any guidance from the Fed on whether to resume rate increases or keep the current pause. The White House has criticized the central bank’s cautious stance.

Warsh said he will resist calls from elected officials for lower borrowing costs and emphasized institutional independence. He favors a smaller Fed balance sheet and a narrower institutional mandate. He has also proposed tighter limits on public comments by Fed officials about the likely path of interest rates.

Warsh served as a Fed governor from 2006 to 2011 under Chair Ben Bernanke. He took part in decisions during the 2008 financial crisis, including actions related to the Bear Stearns sale, the Lehman Brothers proceedings and the AIG rescue. After leaving the Fed, he was a fellow at Stanford’s Hoover Institution and later worked in private finance.

Financial disclosures show holdings in a stablecoin project, Basis, and in crypto asset manager Bitwise. Warsh has argued that Bitcoin is too volatile to function as an effective medium of exchange. Those holdings and his private-sector work were scrutinized during confirmation hearings but did not prevent his approval.

Warsh’s first meeting leading the FOMC will be watched for any guidance on the future path of interest rates, balance-sheet policy and how the Fed plans to address ongoing inflation pressures while maintaining credibility.