JAKARTA, IDN Times – Kevin Warsh was officially sworn in as the new Chair of the Federal Reserve on Friday (May 22, 2026), replacing Jerome Powell. The ceremony took place at the White House, marking a significant transition in U.S. monetary leadership under President Donald Trump.
Warsh steps into this pivotal role as the U.S. central bank navigates a volatile economic landscape burdened by interest rate pressures. President Trump has explicitly called for Warsh to maintain total independence while delivering strong results. During the ceremony, Trump emphasized, “I want Kevin to be truly independent,” adding, “Don’t look at me, don’t look at anyone.”
The involvement of the President in the appointment ceremony has drawn notable attention. Warsh is the first Federal Reserve Chair to be sworn in at the White House since Alan Greenspan in 1987.
1. Trump’s Push for Lower Interest Rates
During the inauguration, President Trump made his expectations clear, signaling a desire for an era of lower interest rates under Warsh’s leadership. Reflecting on his past frustrations, Trump noted at an event in Suffern, “You just wait and see what happens. I used to have a bad Fed Chair, and now I have a great one.” He expressed high confidence in his new appointee, stating, “Kevin was just sworn in today; he is great, and he is going to be extraordinary.”
2. Mandate to Ensure Economic Stability
The ceremony, held in the White House East Room, drew a crowd of prominent figures, including Supreme Court Justices Clarence Thomas and Brett Kavanaugh, and House Speaker Mike Johnson. Justice Thomas presided over the oath of office. Following the ceremony, Warsh reaffirmed his commitment to the core mission of the central bank.
“Our mandate at the Fed is to maintain price stability and maximize employment,” Warsh stated. He expressed his belief that by pursuing these goals with clarity, wisdom, and independence, the nation could achieve lower inflation, stronger economic growth, and higher real incomes for the public, ultimately making America more prosperous and secure on the global stage.
3. A Reform-Oriented Leadership
To achieve these objectives, Warsh pledged to lead a reform-oriented Federal Reserve. He emphasized the importance of learning from past successes and failures while moving away from rigid, outdated models. He remains committed to maintaining high standards of integrity and performance throughout his tenure.
Warsh becomes the 11th Chair of the Federal Reserve in the modern banking era, succeeding Jerome Powell, who held the position for eight years. Powell, who frequently drew Trump’s ire for his reluctance to cut interest rates, will remain on the Federal Reserve Board as a governor. This decision makes Powell the first Federal Reserve Chair in nearly 80 years to remain on the board following the conclusion of their term as head of the institution.
Summary
Kevin Warsh was officially sworn in as the new Chair of the Federal Reserve on May 22, 2026, succeeding Jerome Powell in a ceremony held at the White House. President Donald Trump, who advocated for the appointment, emphasized the necessity for Warsh to maintain total independence while navigating the current economic landscape. Notably, Warsh is the first Fed Chair since 1987 to take the oath of office at the White House.
During the event, Warsh reaffirmed his commitment to the Federal Reserve’s dual mandate of ensuring price stability and maximizing employment. He signaled a move toward reform-oriented leadership, intending to shift away from outdated models to foster stronger economic growth and lower inflation. Meanwhile, Jerome Powell will remain on the Federal Reserve Board as a governor, marking the first time in nearly 80 years that a former Chair has stayed on the board following their term.