Kevin Warsh was sworn in as Chairman of the US Federal Reserve Board of Governors at a White House ceremony on Friday. President Donald Trump welcomed Warsh and praised his qualifications, saying he expects Warsh to be “one of the truly great chairmen of the Federal Reserve.”
Trump emphasized that the Fed chair should act independently, saying he wants Warsh to “be totally independent” and “just do a great job.” The president added he believes Warsh will restore confidence in the Fed across the political spectrum.
The ceremony drew attention because Trump had taken a personal interest in the appointment after policy disagreements with outgoing Chair Jerome Powell, particularly over interest rate decisions. Powell, also a Trump pick in his first term and reappointed in 2021 by the Biden administration for a second term, was sworn in at the Federal Reserve earlier; the White House ceremony for Warsh marked a return to a tradition last seen with Alan Greenspan in 1987.
Warsh was confirmed by the Senate on May 14 as the 17th Chair of the Board of Governors for a four-year term. The Fed said Powell would continue as acting chair until Warsh’s swearing-in. Warsh agreed to divest certain personal investments to meet ethics requirements, a step that officials said would smooth the transition.
He takes the job amid rising inflation, pressured consumer sentiment and geopolitical uncertainty tied to tensions in West Asia that have pushed up oil prices and market volatility. Those conditions will shape the Fed’s policy challenges as Warsh sets priorities.
A former Morgan Stanley banker and Bush administration official, Warsh became the youngest governor to join the Federal Reserve in 2006. He brought a Wall Street perspective to a Board long dominated by economists and was skeptical of the Fed’s large-scale bond-buying during the 2008–09 financial crisis, warning it could become unwieldy or politically influenced.
As chairman, Warsh has said he will work to reduce the Fed’s expanded balance sheet—currently more than $6 trillion—and pursue other changes he believes will strengthen the central bank. His proposals have drawn mixed reactions from market participants.
The administration and Fed officials framed the transition as orderly following Senate confirmation and Warsh’s compliance with ethics rules. Observers will watch how his leadership and policy choices affect inflation, markets and public confidence in the central bank.
