Kevin Warsh Set to Be Sworn In as Fed Chair This Friday

CNBC reported Monday that Kevin Warsh will be officially sworn in as Federal Reserve chair at a White House ceremony this Friday, ending a lengthy succession process that began in the summer of 2025.

A New Era at the Federal Reserve

President Donald Trump will personally administer the oath to Warsh, 56, whom he nominated to lead the central bank. The Senate confirmed Warsh last week in a vote that fell almost entirely along party lines. Once the ceremony concludes, Warsh will become the 11th chair in the Fed’s modern history. He will also be the wealthiest individual ever to hold the position, based on financial disclosures filed ahead of his confirmation hearings.

As a condition of taking office, Warsh must divest a substantial portion of his investment portfolio. Stricter financial disclosure rules adopted for Federal Reserve officials require that divestment before he can fully assume his duties.

Powell’s Tenure Comes to a Close

Outgoing chair Jerome Powell technically saw his term expire on Friday. However, he has remained in the role on a pro-tempore basis until Warsh is formally installed. Powell’s tenure spanned one of the most turbulent stretches in recent monetary policy history, including aggressive rate hikes to combat a surge in inflation. Critics have noted that the Fed under Powell missed its 2% inflation target for more than five years consecutively.

Background: A Process That Stretched Nearly a Year

Trump’s push to replace Powell grew public through mid-2025 amid ongoing tensions between the White House and the central bank over the pace of rate cuts. The administration openly favored a more accommodative monetary stance. The Fed lowered borrowing costs three separate times in 2025, but those cuts ultimately failed to satisfy market expectations or the administration’s preference for faster easing.

What Markets Expect Next

Warsh enters the role carrying significant political weight and explicit rate-cut expectations from the White House. Markets, however, are pricing in a more cautious path. Persistent inflation and a resilient labor market are seen as likely barriers to further easing until price growth shows a clear and sustained move back toward the 2% goal. Warsh will chair his first Federal Open Market Committee meeting in the coming weeks, and investors will scrutinize every word for signals about how quickly, if at all, rates may fall.

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