Kevin Warsh Commits to Upholding Federal Reserve Traditions While Pursuing Reform

Kevin Warsh was sworn in as the new Chair of the Federal Reserve in a ceremony held at the White House on May 22, 2026. In a memo addressed to the central bank's staff, Warsh expressed his intention to honor the Federal Reserve's most valued traditions while also exploring potential changes to its practices. He aims to review current strategies and consider operational modifications, reflecting on what he perceives as a deviation from the Fed's mission. Warsh emphasized the importance of prioritizing sound policy in alignment with the national interest and fostering a supportive environment for the workforce. He indicated that the institution would not solely rely on established methods when superior alternatives are available. In addition, he has appointed two conservative advisors, Daniel Heil and Paul Winfree, to assist during his transition, as he plans a range of initiatives for his tenure. As chair, Warsh aims to address reforms such as reducing the Fed's $6.7 trillion balance sheet and reevaluating how inflation is measured. His leadership comes at a critical time, especially with ongoing legal uncertainties affecting the Fed's independence. Warsh’s initial meeting as chair is scheduled for June 16-17, where he will likely discuss economic outlooks and monetary policy directions.