Quick overview

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Kevin Warsh will be sworn in as Chair of the Federal Reserve this Friday in a White House ceremony presided over by U.S. President Donald Trump.

He succeeds Jerome Powell at the helm of the world’s most influential central bank during one of the most inflationary periods in recent years.

Warsh’s confirmation was approved on May 13. He will serve a four-year term as Fed Chair and a 14-year term as a member of the Board of Governors. Powell, meanwhile, has confirmed that he will remain on the Board until January 2028.

The road to confirmation was far from smooth. Republican Senator Thom Tillis blocked Warsh’s nomination for several weeks in protest over a federal investigation into Powell and the Federal Reserve related to the cost overruns associated with renovations at the central bank’s Washington headquarters.

Just days before the Senate vote, a federal judge sharply criticized the case, prosecutors formally dropped the investigation in April, and Tillis lifted his hold, clearing the way for Warsh’s confirmation.

At the same time, Fed Governor Stephen Miran is expected to step down on or shortly before Warsh’s inauguration. Miran had temporarily filled a vacant seat while serving on leave from his position as Chair of the White House Council of Economic Advisers.

Trump’s Choice for the Federal Reserve

Trump selected Warsh largely because of his support for lower interest rates.

The incoming Fed Chair has repeatedly argued in favor of cutting rates while simultaneously shrinking the central bank’s balance sheet, a policy combination that many economists view with skepticism.

However, Warsh appears to be entering office in the minority relative to many of the policymakers he will oversee.

Minutes from the Federal Open Market Committee’s April 28–29 meeting, released Wednesday, showed that most officials believed that “some further tightening of monetary policy would likely be appropriate” if inflation remains persistently above the Fed’s 2% target.

The Trump administration’s approach toward the Federal Reserve has also sparked debate. White House officials have openly suggested that the central bank should align more closely with the president’s fiscal agenda and operate with less independence.

During his confirmation hearings, Warsh echoed parts of that rhetoric but maintained that he would preserve the institution’s operational independence once in office.