The leadership of the Federal Reserve (Fed) officially completed a historic handover today.
At 11:00 AM Eastern Time today (May 22, 2026), Kevin Warsh, 56, former Fed Governor, was sworn in as the new Chairman of the Federal Reserve at the White House, presided over by President Donald Trump. This breaks with decades of tradition—the last time a sitting president personally presided over the Fed chairman's inauguration ceremony at the White House was during the Alan Greenspan era in 1987.
Trump strongly supports him: No one is more suitable than him, and he should "not be beholden to me."
At the swearing-in ceremony, Trump praised his newly nominated chairman, who narrowly passed the Senate vote 54-45 on the 13th of this month. Trump even joked that the stock market jumped 600 points because of Warsh's appointment, "They (the market) really like you!"
It is noteworthy that Trump, who has often interfered with the Federal Reserve's monetary policy in the past, has this time unusually and explicitly emphasized the central bank's independence:
"I hope Kevin can remain completely independent... Don't look at me, don't look at anyone. Just do your own thing and do it well."
Warsh makes a low-key statement: Defending independence and focusing on combating inflation.
Following Jerome Powell, Warsh became the top helmsman of the global financial markets. His speech at the ceremony maintained the simplicity and low-key style traditionally reserved for Fed officials.
Aside from expressing gratitude and honor to President Trump, Warsh did not offer any specific timetable for interest rate cuts or monetary policy. He focused his speech on the central bank's core mission, emphasizing its commitment to maintaining the Fed's independence and focusing on stabilizing prices (combating inflation), promoting employment, and driving economic growth with a professional and data-driven approach.
Warsh served as a Fed governor from 2006 to 2011 and personally experienced the crisis management of the 2008 financial crisis. With the "Powell era" officially coming to an end on May 15, global markets are holding their breath, awaiting Warsh's first formal policy speech in the coming weeks to get a glimpse of the new chairman's approach to solving the current inflationary pressures and high-interest-rate environment.
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