Kevin Warsh, the 17th Chair of the Federal Reserve, is heading into his first FOMC meeting on June 16-17 with a reputation that has already spooked markets. Sworn in on May 22, 2026, after a Senate confirmation on May 13, the former Fed Governor has made one thing abundantly clear: he thinks inflation is something you fix on purpose, not something you wait out.
A strict 2% target and fewer words
During his Senate testimony in April 2026, Warsh described inflation as “a choice.” That framing is not accidental. It signals a philosophical break from the flexible average inflation targeting framework Powell adopted in 2020, which allowed inflation to run above 2% for extended periods to make up for prior shortfalls. Warsh’s preferred strategy involves a return to a rigid 2% inflation target, with no tolerance for overshooting in the name of making up lost ground.
He’s also indicated a preference for alternative inflation measures like trimmed-mean or median inflation, rather than relying primarily on headline PCE or CPI.
Warsh has not committed to holding regular press conferences after every FOMC meeting, a sharp departure from the Powell era, where post-meeting press conferences became standard fare. Forward guidance appears to be getting demoted in the Warsh Fed.
