Overview
- Kevin Wash was sworn in at the White House on May 22 to begin a four-year term as chair of the Federal Reserve.
- At his swearing-in he cast himself as a reform-minded leader focused on the Fed’s dual mandate of price stability and maximum employment and said the Fed’s asset holdings should be reduced carefully and gradually.
- President Trump said he wants Wash to act “completely independent,” yet public pressure from the White House and a Justice Department probe into building renovation costs involving former chair Jerome Powell are raising concerns about political influence.
- Rising oil prices tied to tensions in the Middle East have pushed up U.S. inflation and led markets to pare back expectations for near-term rate cuts, increasing the likelihood that the Fed will keep policy restrictive for longer.
- Watch for Wash’s review of how inflation is measured, his repeated references to productivity gains from AI as a possible long-term disinflation factor, and how his choices on communication and balance-sheet policy shape market confidence and global borrowing costs.