Kevin Warsh hasn’t even broken in his office chair yet, and the economy is already testing him.
Sworn in as Federal Reserve Chair on May 22, 2026, Warsh is preparing to lead his first Federal Open Market Committee meeting in mid-June with inflation running at 4.2%, a three-year high. For a man who built his reputation on hawkish inflation views, the timing is almost poetic. Also, deeply inconvenient.
The setup
Warsh succeeds Jerome Powell at a moment when the Fed’s core mandate, price stability, is under visible strain. The 4.2% inflation reading has been driven largely by rising energy prices, pushing consumer costs well above the central bank’s target.
Warsh has publicly advocated for a strict 2% inflation target. Not a flexible one. Not an “average” one. A hard 2%.
