President Donald Trump swore in Kevin Warsh as the new Federal Reserve Chair in Washington, D.C., on May 22, 2026 [1].
The appointment signals a potential shift in U.S. monetary policy. Trump said he wants the central bank to pursue interest-rate cuts to stimulate the economy, a move that could influence inflation and borrowing costs across the country.
Supreme Court Justice Clarence Thomas administered the oath of office during the ceremony [2]. The event marks the formal transition of leadership for the nation's most powerful economic institution.
Trump said Warsh is "totally independent" and said he wants the new chair to "do his own thing" [3]. Despite the emphasis on autonomy, the president linked the appointment to his specific economic goals. Trump said, "I want an independent Fed under my hand-picked chair" [4].
Warsh takes over the role at a time when the relationship between the executive branch and the Federal Reserve has been a point of public contention. Trump said Warsh should "be totally independent" while leading the agency [5].
The move comes as the administration seeks to implement a broader economic strategy. By selecting a chair who is perceived as independent but aligned with the goal of lowering rates, the administration aims to balance market stability with aggressive growth targets [6].
Warsh's tenure begins immediately following the May 22 swearing-in [1]. The markets are now monitoring how the new chair will navigate the pressure to lower rates while maintaining the Fed's statutory mandate to manage price stability.
“"I want an independent Fed under my hand-picked chair"”
The appointment of Kevin Warsh represents an attempt by the Trump administration to harmonize the Federal Reserve's independent mandate with the president's preference for lower interest rates. While the rhetoric emphasizes independence, the explicit goal of stimulating the economy through rate cuts suggests a shift toward a more accommodative monetary policy that could lower borrowing costs but potentially complicate the long-term fight against inflation.
