Kevin Warsh Sworn In as Fed Chair, Promises Reform
SkimNews Take
The administration's public embrace of a "reform-oriented" Fed chair could be a strategic move to signal stability and independence to global markets, potentially mitigating the economic fallout from other volatile policy decisions.
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- Kevin Warsh was sworn in as Federal Reserve Chair at the White House on May 22, the first such ceremony since Alan Greenspan in 1987.
- Kevin Warsh pledged a “reform‑oriented” agenda, saying inflation can be lower, growth stronger and real take‑home pay higher, and he will avoid being a “puppet” for President Trump.
- President Trump promised the new Fed chief would be “totally independent” and urged him to let the economy “boom” while stopping inflation.
- Clarence Thomas administered the oath to Warsh, with Brett Kavanaugh in attendance, as the Supreme Court prepares to rule on Trump’s attempt to fire Fed Governor Lisa Cook.
- U.S. inflation hit 3.8 % in April, a three‑year high, prompting some Fed policymakers to signal possible rate hikes if inflation stays above the 2 % target.
Why it matters: Businesses and workers could see lower inflation and higher wages if Warsh’s reforms succeed, while markets may adjust to potential rate hikes; the Fed’s policy shift also impacts Treasury yields and borrowing costs.
