In an East Room ceremony that broke nearly four decades of tradition, Kevin Warsh was sworn in as the 11th Chair of the Federal Reserve on Friday, May 22, 2026, at the White House — the first central bank chief sworn in by a sitting president since Alan Greenspan in 1987 under Ronald Reagan. New US Federal Reserve Chair Kevin Warsh vowed to be "reform-oriented" as he was sworn in, with President Donald Trump insisting the central bank chief would be "totally independent." Justice Clarence Thomas administered the oath as Warsh placed his hand on a Bible held by his wife, Jane Lauder, in the East Room before an audience of Supreme Court justices, members of Congress, Cabinet members, and business leaders. The ceremony was lavish by any Fed standard — and its optics, deliberately or not, sent an unmistakable signal about the new relationship between the White House and America's central bank.
Warsh's Pledge: Reform, Independence, and Escaping 'Static Frameworks'
"Our mandate at the Fed is to promote price stability and maximum employment," Warsh said after being sworn in. "When we pursue those aims with wisdom and clarity, independence and resolve, inflation can be lower, growth stronger, real take-home pay higher, and America can be more prosperous, and no less important, America's place in the world more secure."
"I will lead a reform-oriented Federal Reserve, learning from past successes and mistakes both, escaping static frameworks and models, and upholding clear standards of integrity and performance," Warsh said. The phrase "escaping static frameworks" is a pointed signal to the economics community and to markets alike. It suggests Warsh intends to challenge the Fed's reliance on models like the Taylor Rule and standard DSGE frameworks that guide conventional monetary policy — an approach that would give him more discretionary flexibility in navigating the current stagflationary environment. He called for central bankers to pursue their goals "with wisdom and clarity, independence and resolve," invoking Reagan in his speech as a personal role model. For Warsh's full confirmation hearing testimony, prior Fed speeches, and all FOMC documentation under his chairmanship, the Federal Reserve's official biography and records page maintains authoritative primary-source documentation on all current board members and chairs.
Trump's Mixed Message: "Totally Independent" — But Let It "Boom"
Trump's remarks at the ceremony were a study in deliberate ambiguity — designed simultaneously to reassure markets about Fed independence and to signal his personal expectations. "Honestly, I really mean this, this is not said in any other way, I want Kevin to be totally independent," Trump said. "I want him to be independent and just do a great job. Don't look at me, don't look at anybody, just do your own thing and do a great job, OK?" In the same breath, Trump made his economic wishes explicit: "Kevin understands that when the economy is booming, that's a good thing. We want to stop inflation, but we don't want to stop greatness," Trump said, urging Warsh to let the economy "boom."
As Warsh left the ceremony, Treasury Secretary Scott Bessent reinforced Trump's message, predicting to reporters that Warsh will "do the right thing for inflation and growth." The implicit expectation — lower rates — has been the constant backdrop to Trump's long public campaign against Jerome Powell. Trump exerted unprecedented pressure on the central bank, attempting to fire a Fed governor and pursuing a criminal probe against Warsh's predecessor Jerome Powell. The contrast between Trump's public pledge of independence and his historical behaviour toward the Fed is not lost on markets — or on Warsh himself, who will know that his independence will be tested at the very first meeting.
Who Is Kevin Warsh? The 11th Chair of the Modern Fed
Warsh, 56, is the 11th Fed chair of the modern banking era, succeeding Jerome Powell, who served eight years. Warsh is a former Federal Reserve governor, financier, and lawyer with long-standing ties to Washington and Wall Street. He served on the Fed's Board of Governors from 2006 to 2011 and, at 35, ranked among the youngest governors in modern central bank history. He earned a bachelor's degree in public policy from Stanford University and a Juris Doctor from Harvard Law School. He played a critical role during the 2008 financial crisis, navigating the emergency response alongside then-Chair Ben Bernanke, and subsequently built a career in academic and policy circles at the Hoover Institution and the Stanford Graduate School of Business before being tapped by Trump.
Warsh gained the seat following a wide-ranging competition that began in the summer of 2025 and included as many as 11 candidates, ranging from current and former Fed officials to prominent economists and Wall Street strategists. His nomination was confirmed by the Senate and he was formally introduced at the ceremony by Trump, who said: "I expect he will go down as one of the truly great chairmen of the Federal Reserve that we've ever had, I really believe that."
The Towering Challenge: Stagflation, A Hawkish Committee, and June's First Test
Warsh steps into the four-year role at a time of mounting uncertainty over inflation, geopolitical conflicts and volatile financial markets, alongside rising political pressure on the central bank's independence. Warsh's first policy meeting in June will test his independence amid Trump's demands for rate cuts. The challenge is structurally severe: the Fed is dealing with a tricky economic picture as the oil shock from the Iran war has sharply pushed up gasoline prices and mortgage rates, with consumer sentiment at historic lows.
Despite Trump's demands for lower rates, markets are betting the Fed will stay on hold through most, if not all, of 2026, and then possibly hiking rates in early 2027. Warsh has vowed to preserve the Fed's independence over monetary policy, telling lawmakers he will never "predetermine" interest rates at Trump's request. He has suggested he's open to working with the Trump administration on other issues, arguing last year that the Fed and the Treasury Department could strike a new "accord" governing the central bank's balance sheet. Monetary policy decisions are made by a committee of 12 top Fed officials, and while the chair usually has a lot of sway, Warsh would still need to persuade the panel that rate cuts make sense — a panel that, per the April minutes, is increasingly leaning in exactly the opposite direction. The gap between Trump's expectations and economic reality is the defining tension of Warsh's opening chapter — and June 16-17 is where that tension will first be tested in public.