Kevin Warsh Takes Over as Federal Reserve Chair
Kevin Warsh is now chair of the Federal Reserve. He replaced Jerome Powell whose term ended on May 15, 2026.
Powell is staying on the Fed's board. This is rare and has not happened in nearly 80 years.
Warsh is President Trump's pick for the role. He was approved 54 to 45 on May 13, 2026.
This was the closest Fed chair vote in US history. The vote had been delayed for months.
Senator Thom Tillis blocked it to protest a Justice Department inquiry into Powell. That inquiry was later dropped.
Warsh now leads the Fed during a hard time for prices. April inflation was 3.8% compared to a year ago.
This is the highest level in nearly three years. Under Powell the Fed had managed to lower inflation without causing a recession or job losses. But the Fed had been criticized for reacting too slowly when prices first rose after the Covid pandemic.
Key Terms 4
- Federal Reserve The US central bank that controls interest rates and manages the economy
- Inflation When prices rise over time making things cost more
- Soft landing Slowing inflation without causing a recession or job losses
- CPI Consumer Price Index — a measure of how much everyday prices have risen