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Kevin Warsh Takes Over the Federal Reserve, Vowing Independence Under Pressure

Rising prices leave little room for quick interest-rate cuts.

Overview

  • Warsh, who assumed the chair Friday, said he will protect the Fed’s independence despite public pressure from President Trump.
  • The Senate approved his nomination 54–45 on May 13 after a tense confirmation fight that highlighted political divisions.
  • Jerome Powell ended his eight-year tenure as chair and will remain a Fed governor, with the option to serve through January 2028 as internal reviews continue.
  • Inflation has reaccelerated as energy costs tied to the Middle East conflict push up prices, and recent data show services prices outpacing wage gains.
  • A split policy vote of 8–4 at the April 29 meeting signaled an unusually divided committee, and Warsh’s first rate decision comes at the June 16–17 meeting.