Kevin Warsh took the oath as Federal Reserve chair at the White House on Friday morning, giving President Donald Trump a new Fed chief at a rough time for the U.S. economy.
Supreme Court Justice Clarence Thomas swore him in. Treasury Secretary Scott Bessent, Federal Housing Finance Agency Director Bill Pulte, National Economic Council Director Kevin Hassett, and Justice Brett M. Kavanaugh were also at the ceremony.
Kevin now has to deal with a president who wants much lower interest rates, a Fed board that does not fully agree on inflation, and traders who think the next rate decision may not be a cut at all. It may be a hike.
Kevin takes the Fed job as Trump demands cheaper money and inflation stays hot
Trump used the ceremony to say Kevin should make his own calls at the central bank, even though Trump has been loud about wanting lower rates.
“I want Kevin to be totally independent. I want him to be independent and just do a great job. Don’t look at me. Don’t look at anybody. Just do your own thing. Do a great job. Okay?” Trump said. “We want to stop inflation, but we don’t want to stop greatness.”
Kevin has not been quiet about the Fed’s past mistakes. He has blamed recent Fed leaders for doing too much during and after the coronavirus crisis. His view is that the central bank helped fuel the inflation mess by keeping policy too loose for too long.
“Inflation comes from bad policy, not bad luck,” Kevin said in a coming book of Fed interviews.
At his confirmation hearing, Kevin said Trump never asked him to promise rate cuts during his time at the Fed.
“The president never asked me to commit to interest rate cuts at any particular meeting over the period of my tenure at the Fed. He didn’t ask for it, he didn’t demand it, he didn’t require it, and nor would I have ever done so,” said Kevin.
But on politics, Kevin stayed much closer to Trump. He would not say whether Joe Biden won the 2020 election. He also avoided saying whether Trump’s tariffs helped push inflation higher.
Kevin brings Bitcoin exposure and deep crypto ties into the Fed chair’s office
Kevin holds equity positions in over a dozen crypto companies. He is involved in DeFi lending firms, decentralized derivatives firms, Layer 1/Layer 2 network companies, prediction markets, and Bitcoin payment processors.
Financial filings reveal Kevin and his wife had a minimum of $192 million in total assets. It includes speculative ventures related to Solana, Optimism, Dapper Labs, Polychain Capital, and multiple DeFi startups.
In regards to his views on Bitcoin, he has taken a fairly unconventional approach, considering he used to be a traditional central banker. He did not refer to it as an alternative form of currency, but rather a warning system for policy makers.
“I think of Bitcoin as a good policeman,” Kevin said in a 2025 interview. “It’s an important asset that can help inform policymakers when they are doing things right and wrong.”
He also said Bitcoin “does not make him nervous.” Kevin argued that crypto software matters for U.S. innovation and the country’s ability to compete.
At his confirmation hearing, Kevin said digital assets were already part of the “fabric” of the U.S. financial-services industry.
“I will lead a reform-oriented Federal Reserve, learning from past successes and mistakes, both escaping static frameworks and models and upholding clear standards of integrity and performance,” Kevin said Friday.
Trump has spent his second term attacking former Fed chair Jerome Powell for not cutting rates fast enough. He called Jerome a “numbskull” and an “average mentally person.” He also threatened to fire him.
Trump said Friday that Kevin has “the temperament and leadership abilities to foster collaboration among the entire board,” adding that he expects debate at the Fed as it tries to keep prices stable and employment high. Trump also said Kevin would have the full support of his administration.
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