Kevin Warsh just took the wheel at the Federal Reserve, and he’s not easing into the job. At his first FOMC meeting as chairman, Warsh held the federal funds rate at 3.50% to 3.75% and made clear that bringing inflation back to 2% is priority number one.
The declaration landed with a thud on Wall Street. Markets were hoping for dovish signals, maybe a hint that rate cuts were coming. Instead, they got a new chairman who called inflation “a choice” and announced five separate task forces to reshape how the Fed operates from the inside out.
The first meeting sets the tone
Warsh’s inaugural FOMC meeting took place on June 16-17, 2026, less than a month after he was sworn in on May 22. Warsh acknowledged that inflation has been running above the Fed’s 2% target for more than five years, with recent readings clocking in between 3.3% and 3.8%.
By calling inflation “a choice,” Warsh is essentially saying the Fed hasn’t been aggressive enough. That’s a pointed critique of the institution he now leads, and it suggests he views the previous approach as too accommodative, too patient, or both.
