Kevin Warsh: Trump ally at the Federal Reserve?

Published 7 June 2026 · us

Never before has a chair of the US Federal Reserve been so controversial. Who is Kevin Warsh? Can he preserve the Fed's independence, or will

Never before has a chair of the US Federal Reserve been so controversial. Who is Kevin Warsh? Can he preserve the Fed's independence, or will he become Donald Trump's puppet? New Federal Reserve chair Kevin Warsh promised to preserve the Fed's independence as he was sworn in at the White House on Friday. It was an unusual step, since Fed chairs are not normally sworn in at the White House, and presidents usually don't attend, given that the Fed is meant to be politically independent. At Warsh's confirmation hearing, US President Donald Trump insisted the incoming central bank chief would be "totally independent." But some, particularly Democrats, have questioned how independent Warsh will be as head of the world's most powerful central bank. Among them is Democratic Senator Elizabeth Warren, who described Warsh as Trump's "sock puppet” during his Senate confirmation hearing in April. Stressing that independence requires courage, Warren asked Warsh: "Let's check out your independence and your courage. We'll start easy. Warsh, did Donald Trump lose the 2020 election?” Warsh refused to answer directly, saying instead: "We try to keep politics, if I'm confirmed, out of the Federal Reserve.” "His confirmation hearing did not ease concerns," Claudia Sahm, chief economist at New Century Advisors and former economist at the Federal Reserve, told DW. This skepticism was then reflected in Warsh's confirmation vote — where only 54 senators voted in his favor while 45 voted against — "the narrowest margin of any Fed chair," Sahm said. Can the US Federal Reserve stay independent? To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video A high-stakes appointment The Fed chair is one of the most powerful people in the US, overseeing the central bank's decisions on interest rates, which influence not just the banking sector and the dollar's exchange rate but also whether goods and services in the world's largest economy become more or less expensive. Those serving in that role are therefore expected to ensure price stability, maintain confidence in the financial system and safeguard the stability of the global economy.

But Trump has made no secret of what he expects from Warsh, saying that he would be "disappointed” if Warsh didn't cut interest rates right away. The president seems to have an eye on the midterm elections in November, hoping that lower rates will boost the US economy in the run-up to the key polls. Warsh has publicly stated that Trump didn't pressure him on interest rates. "The president never once asked me to commit to any particular interest rate decision, period," Warsh said during his confirmation hearing. "Nor would I ever agree to do so if he had," the 56-year-old asserted. Trump has repeatedly heaped insults on outgoing US Fed chair Jerome Powell for not lowering interest rates Image: Saul Loeb/AFP Trump undermining central bank's independence Warsh's predecessor, Jerome Powell, knows firsthand what pressure from Trump would look like. The US president has repeatedly heaped insults on Powell for not lowering rates, and was even targeted by a Justice Department investigation. The Fed is supposed to be politically independent, but if that were to change it would have massive repercussions, said Kenneth Rogoff, an economist and professor at Harvard University. "The independence of the US federal reserve is uniquely important in the global financial system. Because the dollar sits at the top of the global financial system. And when the US becomes unstable it affects everyone," he told DW. Trump's trade policies and the Iran war have already eroded international confidence in the US president, but "when I talk to investors and ask them what they really pay attention to, they say: the independence of the central bank," Rogoff pointed out. Money and connections Warsh, who was born in New York's state capital, Albany, studied political science with a focus on economics and statistics at Stanford University. He then attended the prestigious Harvard Law School and earned a law degree in 1995. Afterward, Warsh had a stint in investment banking at Morgan Stanley. In 2002, then-US President George W.