Kevin Warsh succeeds Jerome Powell, who had led the Federal Reserve since 2018, Al Jazeera reports. The swearing-in took place at the White House after the Senate confirmed Warsh’s nomination to the Board of Governors and the chairmanship along party lines. Only Senator John Fetterman of Pennsylvania voted with the Republicans.
Warsh takes the helm of the central bank at a time when inflation is rising and consumer sentiment is falling. Markets are bracing for potential interest rate moves that could run counter to Donald Trump’s expectations. Trump himself said at the swearing-in: “I want Kevin to be totally independent and do a great job. Don’t look at me, don’t look at anybody. Just do your job.”
During his Senate Banking Committee hearing, Senator Elizabeth Warren accused him of being a “marionette” of Trump. Warsh rejected the allegations and stressed that he would remain independent in his monetary policy. Under Joe Biden, Warsh had spoken out against interest rate cuts but changed his stance when Trump took office.
In December 2025, Trump declared that he would only appoint someone as Fed chair who agreed with him on rate cuts. Still, Warsh cannot make monetary policy decisions alone – he is one of twelve voting members of the Federal Open Market Committee.
The independence of the Federal Reserve is increasingly under pressure. The partisan vote in the Senate and Trump’s public remarks have raised doubts about the central bank’s future role. Warsh must now restore market confidence while fighting inflation.
EuroPulse reported on May 17, 2026, on Wall Street’s initial tests of Warsh before he took office: Wall Street tests Kevin Warsh before his term as Fed chair.
Source: www.aljazeera.com
