Kevin Warsh took over as Federal Reserve chair at a White House swearing-in ceremony on Friday, May 22, 2026, as President Donald Trump publicly urged him to lead the central bank independently.

The transition places Warsh at the center of a politically sensitive moment for the Federal Reserve, with inflation, interest rates and central bank independence all under close national scrutiny.

Trump Says Warsh Should Lead Without Political Pressure

During the ceremony, Trump said Warsh should act independently and not look to the White House for direction. The remarks came after months of Trump publicly pressing outgoing Fed Chair Jerome Powell over interest rates.

The setting also drew attention because a White House ceremony for a new Fed chair is unusual in modern times, adding political symbolism to Warsh’s first day leading the central bank.

Fed Independence and Interest Rates Become Early Tests

Warsh now inherits a difficult policy environment. The Federal Reserve faces pressure over whether to cut, hold or raise rates while Americans continue to watch inflation, borrowing costs and economic growth.

Trump has repeatedly argued that interest rates should be lower, but the Fed’s credibility depends on its ability to make monetary policy decisions without direct political influence.

Trump Criticizes Fed Focus on Climate and DEI

Trump also criticized what he described as the Fed’s past attention to climate policy and diversity, equity and inclusion initiatives. He argued that the central bank should stay focused on inflation, employment and monetary policy.

That criticism reflects a broader debate over how narrowly the Federal Reserve should define its mission at a time when economic policy remains deeply political.

Warsh begins his term with one immediate challenge: proving that the Fed can respond to inflation and interest-rate pressure while maintaining public confidence in its independence.