Kevin Warsh Officially Heads the Fed as US Inflation Becomes Increasingly Concerning

Kevin Warsh was officially sworn in as Chair of the Federal Reserve (the Fed) on Friday, 22 May 2026, local time. He assumes leadership in a complex economic backdrop, as rising energy prices push inflation higher and consumer confidence wanes.

The swearing-in took place in the East Room of the White House. U.S. President Donald Trump attended the ceremony in person, alongside a number of senior government officials.

The leadership change at the Fed comes as the U.S. economy faces pressure from multiple directions. Reuters reported on Saturday, 23 May 2026, that higher fuel prices following the Iran conflict pushed inflation higher, while import costs, trade tariffs, and rising utility bills added to the pressure.

Meanwhile, developments in artificial intelligence (AI) are beginning to reshape the structure of the economy and the world of work, presenting new challenges for monetary policymakers.

Trump, who has frequently criticised former Fed chair Jerome Powell for not being aggressive enough in cutting rates, said his administration would give Warsh full backing. “We will cut rates,” Trump said in a separate remarks in New York. He added that lower energy prices could provide room for monetary policy easing.

In his post‑inauguration speech, Warsh described his appointment as the ‘greatest honour’ in his public service career. He pledged to usher in reforms at the Fed while continuing to learn from the successes and mistakes of previous policy. “We will lead a reform‑oriented Federal Reserve, move away from a static mindset, and uphold standards of integrity and performance,” Warsh said.