President Donald Trump is set to swear in Kevin Warsh as the next chair of the Federal Reserve during a White House ceremony on Friday, marking the beginning of a closely watched leadership transition at the US central bank.
A White House official confirmed that the ceremony will take place on May 22, following Warsh’s confirmation by the US Senate earlier this month.
Warsh will succeed Jerome Powell, whose official term expired last week but who has continued serving in a temporary capacity until the transition is completed.
The Senate confirmed Warsh in a 54-45 vote, the narrowest confirmation margin ever recorded for a Federal Reserve chair.
Warsh, 56, will become the 17th leader of the Federal Reserve and the 11th chair of the modern Fed era.
Warsh takes over amid inflation concerns
Warsh assumes leadership of the central bank during a period of renewed inflationary pressure and heightened geopolitical uncertainty.
Recent economic data have complicated expectations for Federal Reserve policy after inflation accelerated again in recent months.
Last week, US consumer price index data showed inflation rising 3.7% year over year, while producer prices climbed 6%.
The renewed inflation pressures have led financial markets to sharply reduce expectations for near-term interest rate cuts.
According to money market pricing and LSEG data, traders are increasingly expecting the possibility of another interest rate hike later this year instead of monetary easing.
Rising oil prices linked to the ongoing conflict involving Iran and Israel have further intensified concerns that inflation could remain elevated longer than previously expected.
Warsh now faces the difficult task of balancing inflation risks, economic growth concerns, and financial market expectations as he begins his four-year term leading the central bank.
Trump seeks lower interest rates
The leadership transition also comes amid ongoing pressure from Trump for lower borrowing costs.
Since the start of his second presidency, Trump has repeatedly criticized the Federal Reserve’s policy stance and argued that interest rates should move lower to support economic growth.
The White House’s decision to appoint Warsh has been widely viewed as an effort to reshape the Fed’s direction after years of tension between Trump and Powell over monetary policy decisions.
Trump has publicly stated that he expects the post-Powell Federal Reserve to resume cutting rates, similar to the three rate reductions implemented during 2025.
However, investors and economists remain skeptical that the central bank will be able to ease policy quickly, given current inflation conditions and a labor market that has remained relatively stable.
During his Senate confirmation hearing, Warsh pledged to act independently while also criticizing several aspects of the Federal Reserve’s recent performance.
Markets focus on Fed independence and policy outlook
Investors are now closely watching whether Warsh will maintain the Federal Reserve’s traditional independence from political pressure once he officially takes office.
Critics have raised concerns about how closely aligned Warsh may be with White House policy priorities, particularly regarding interest rates.
At the same time, financial markets are trying to assess how the new Fed chair will respond if inflation continues accelerating while economic growth slows.
Warsh also enters the role under stricter ethics and financial disclosure requirements adopted for Federal Reserve officials in recent years.
Based on financial disclosures filed during the confirmation process, he is expected to become the wealthiest person ever to serve as Fed chair and will need to divest significant portions of his investment holdings to comply with regulations.
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