Trump picked Kevin Warsh to run the Federal Reserve. Now the two can’t agree on the most important number in finance.
The president has been publicly pushing for rate cuts of 1% or lower, while Warsh, who was sworn in as Fed Chair in May 2026, chose to hold the federal funds rate steady at 3.5-3.75% during his first FOMC meeting on June 16-17. With inflation sitting at a three-year high of 4.2% year-over-year, Warsh’s decision to prioritize price stability over political pressure sets up a confrontation that could rattle every corner of financial markets, crypto included.
The awkward breakup nobody wanted
Trump nominated Warsh back in January 2026, and the confirmation process was anything but smooth. Warsh squeaked through with the narrowest confirmation vote in Fed Chair history.
Before taking office, Warsh made comments that leaned dovish, suggesting he might be sympathetic to easing monetary conditions. But once he actually sat down in the big chair and stared at the inflation data, his tone changed. His post-FOMC communications have emphasized the Fed’s independence and a clear focus on taming inflation.
