Kevin Warsh Signals Shift at the Fed, Critiques Trump and Powell
WHO:
The Motley Fool - Kevin Warsh is the new Federal Reserve Chair.
CNBC - Scott Clemons is the chief investment strategist at Brown Brothers Harriman.
CNBC - Loretta Mester is a former Cleveland Fed President who served from 2014 to 2024.
WHAT:
The Motley Fool - Warsh stated, "The commitment to deliver [price stability] is strong, unanimous, and unambiguous. And that's an important message we've missed for five years. And we're going to fix that."
The Motley Fool - Warsh confirmed that nine of the 18 policymakers projected that interest rates would be higher than they are currently by the end of 2026.
CNBC - Warsh's task forces will examine the Fed's $6.7 trillion balance sheet and propose a potential path to cutting the holdings.
The Motley Fool - Warsh led his first Federal Open Market Committee (FOMC) meeting on June 17, 2026.
The Motley Fool - The FOMC left the federal funds target rate unchanged during the meeting.
The Motley Fool - Warsh announced the establishment of five task forces to review various aspects of monetary policy.
CNBC - Warsh's first FOMC meeting included a statement that inflation remains elevated relative to the Committee's 2% goal.
CNBC - Nine of the 18 policymakers projected that interest rates would be higher by the end of 2026.
WHERE:
CNBC - The FOMC meeting took place in Washington, DC.
WHEN:
The Motley Fool - Warsh's term as Fed chair officially started on May 22, 2026.
The Motley Fool - Jerome Powell's term as Fed chair ended on May 15, 2026.
The Motley Fool - Warsh's comments about inflation were made during a press conference following the FOMC meeting on June 17, 2026.
WHY:
CNBC - Warsh's approach aims to address a "credibility deficit" at the Fed, which he previously criticized during his campaign for the chair position.
The Motley Fool - Warsh attributed elevated inflation to Powell's policies of keeping interest rates low and expanding the Fed's balance sheet.
The Motley Fool - Warsh's comments on inflation also indirectly placed blame on President Trump for his tariffs and decisions related to the Iran war.
HOW:
CNBC - Warsh's task forces will "start with first principles, ask hard questions, examine current practice, consider alternatives, and ultimately propose next steps for policymaker consideration."
CNBC - Warsh's task forces will utilize resources and experts from within the Fed and outside to examine communications, data, inflation views, technology impacts, and the Fed's balance sheet.
CNBC - Warsh's approach to communication included a more concise FOMC statement, returning to a format used prior to March 2009, and eliminating forward guidance language.
(UPDATED June 22, 2026 10:49 UTC)
In a strong statement, Warsh emphasized the Federal Reserve's commitment to price stability, declaring it "strong, unanimous, and unambiguous," and acknowledged that this important message has been overlooked for five years. He also revealed that nine out of the 18 policymakers expect interest rates to rise by the end of 2026, while his task forces will investigate the Fed's $6.7 trillion balance sheet and suggest a plan for reducing those holdings. Warsh's approach is designed to tackle a "credibility deficit" at the Fed, as he aims to start with fundamental principles and rigorously evaluate current practices to propose actionable next steps for policymakers.
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(UPDATED June 22, 2026 08:52 UTC)
Kevin Warsh has been appointed as the new Federal Reserve Chair, leading his first Federal Open Market Committee meeting on June 17, 2026, where the federal funds target rate was left unchanged. During this meeting in Washington, DC, Warsh announced the creation of five task forces to review various aspects of monetary policy, while also noting that inflation remains elevated compared to the Committee's 2% goal, attributing this to previous policies and decisions made during Trump’s presidency. Warsh's communication strategy will feature a more concise FOMC statement, reverting to a format used before March 2009, and will eliminate forward guidance language.