Warsh Sworn In as Fed Chair as Inflation Hits 3.8 Percent

Kevin Warsh was sworn in Friday as chair of the Federal Reserve, succeeding Jerome Powell, who had led the central bank since 2018, according to Al Jazeera and Newsweek. The ceremony took place at the White House, Newsweek reported, and Mr. Warsh, 56, pledged to prioritize price stability and employment.

He takes over at an uncomfortable moment. Al Jazeera reported that consumer prices rose 0.6 percent in April after a 0.9 percent jump in March, pushing annual inflation to 3.8 percent, the fastest pace in three years, with energy prices up 17.9 percent over the past year. Gasoline averaged $4.56 a gallon, up from $2.98 on Feb. 28, when the United States and Israel first struck Iran, Al Jazeera said. Newsweek reported that the Fed’s benchmark rate stands at 3.50 percent to 3.75 percent after officials paused cuts earlier this year, and that Fed projections point to a median of about 3.4 percent by the end of 2026, leaving little room for easing.

Mr. Trump, who pressured Mr. Powell for months to cut rates, said in his remarks that he wants Mr. Warsh “to be totally independent and do a great job,” and to “just do your own job,” Al Jazeera reported. Newsweek quoted him telling the new chair to “just do your own thing,” and adding: “We want it to boom.” Al Jazeera noted that in December 2025 Mr. Trump said he would appoint only a central bank leader who agreed with him on cutting rates.

The independence question has followed Mr. Warsh since his nomination. Sen. Elizabeth Warren, D-Mass., called him a “sock puppet” for the president, and Mr. Warsh denied it and said he would remain independent, Al Jazeera reported. The Senate voted along party lines on both his Board seat and the chairmanship, with Sen. John Fetterman of Pennsylvania the only Democrat to help advance the nomination, according to Al Jazeera. Mr. Warsh opposed rate cuts under President Biden but changed his position after Mr. Trump took office, the outlet said.

Newsweek reported that Mr. Warsh has argued for a more aggressive tightening posture and has criticized the Fed for keeping monetary policy “too loose for too long.” Mr. Warsh said he was “not naive” about the economy’s challenges and that inflation can fall while growth stays strong, Al Jazeera reported.

He is one of 12 voting members of the rate-setting committee and cannot move policy alone, Al Jazeera noted. His first meeting as chair is June 16 and 17. The CME Group’s FedWatch tool put the odds of no change at that meeting at 97 percent, and JPMorgan analysts expect rates to stay put until mid-2027, with a possible increase after that, according to Al Jazeera. Eric Sims, an economist at the University of Notre Dame, told Newsweek the Fed is in “an unenviable spot” and that a rate hike or two in coming months would signal real independence.