Kevin Warsh formally assumed the role of Federal Reserve Chair, taking the oath of office and receiving unanimous backing from the Federal Open Market Committee.
Warsh steps into the position as inflation remains elevated and the FOMC faces internal division. The Fed has held rates at 3.50%–3.75% through its most recent meeting. The White House has grown critical of the central bank’s cautious posture.
A Confirmation Built on Narrow Margins
The Senate confirmation vote passed 54-45 this month, the narrowest approval margin for any Fed chair in US history. President Donald Trump nominated Warsh on March 4, 2026. His term as chair runs through May 2030, with his board seat extending to January 2040.
Warsh previously served as a Fed governor from 2006 to 2011 under Chair Ben Bernanke. During the 2008 crisis, he helped coordinate the Bear Stearns sale to JPMorgan Chase, the Lehman Brothers proceedings, and the AIG rescue. After departing the board, he spent years as a fellow at Stanford’s Hoover Institution before returning to private finance.
Jerome Powell will remain on the Fed’s Board of Governors after stepping down as chair, having served in the role since 2018.
Policy Priorities and What to Expect Under Warsh
Warsh has pledged to serve as a “strictly independent” chair, pushing back against Trump’s repeated calls for lower borrowing costs. He supports a smaller Fed balance sheet and a narrower institutional mandate. He has also called for stricter limits on public communications from Fed officials about the rate path.
His crypto and AI financial disclosures revealed personal stakes in stablecoin project Basis and crypto asset manager Bitwise. However, Warsh has argued that Bitcoin (BTC) is too volatile to serve as a medium of exchange.
With US PPI reaching 6% in April, markets are closely watching the Fed’s current rate pause. Warsh’s first FOMC meeting will be the first real test of his independence from Trump.