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The Fed’s Warsh era starts with a flurry of change, but s...
Eleanor Mueller · 2026-06-18 · via Semafor

New Federal Reserve Chair Kevin Warsh rolled out many new initiatives at the central bank on Wednesday, from balance sheet management to public communications — and a potential rebrand for more hawkish policy.

“I am pleased to report that members of the FOMC are unambiguous and unanimous: This committee will deliver price stability,” Warsh declared after policymakers voted unanimously to hold interest rates steady.

It was a reframing of a decision that shrugged off President Donald Trump’s ongoing campaign for lower rates in the face of recently accelerating inflation. Warsh has to walk a tightrope at the central bank, avoiding the type of strong-arming Trump tried with former Chair Jerome Powell while delivering his previewed overhaul of key elements of the Fed without isolating his new colleagues — including Powell.

Warsh seemed to hit the mark on Wednesday as he announced his first changes at the central bank. The shifts extend to the much-analyzed statement the Fed releases after meetings, which as of Wednesday did not include language indicating officials’ next move.

Warsh, who was sworn in last month, told reporters that his aim is “the pursuit of truth,” adding: “I think we’re going to come up with some new and interesting things.”

The new chair was also the only policymaker to not pencil in an interest-rate move for the rest of the year after he spoke out against the so-called dot plot during his Senate confirmation. He also declined again to commit to regular press conferences like his predecessor, instead reiterating that “when you have one, you want to make sure you have something important to say.”

Yet the specter of the Trump administration’s previous attempts to hem in the Fed will linger for Warsh. Illustrating the low chances of Trump getting his long-sought rate cut, nine out of 19 officials penciled in an interest-rate hike this year at the close of this week’s meeting.