Treasury Secretary Scott Bessent is making two bets at once. He thinks the new Federal Reserve chair is the right person for the job, and he thinks inflation is heading lower. Both predictions, in his telling, are connected to the same thread: what happens after an energy shock fades.
Bessent publicly praised Fed Chair Kevin Warsh in June 2026, calling him an ‘incredible choice’ for the role and pointing to a professional relationship stretching back nearly two decades.
A new Fed chair, a familiar face
Warsh was confirmed by the Senate around May 13, 2026, stepping into the Fed chair role immediately after Jerome Powell’s term concluded. Bessent and Warsh have established a regular cadence of communication, including scheduled breakfast meetings designed to keep their policy perspectives aligned.
Warsh has a long history in Washington financial circles, having served on the Fed’s Board of Governors during the 2008 financial crisis. Bessent’s characterization of their 20-year connection suggests the two operate with a shared vocabulary on markets and monetary policy.
