Can Kevin Warsh Change the Federal Reserve?
Warsh took the helm of the century-old institution amid stubborn inflation, supply shocks, and tariff threats. Now, he wants to make his mark.
Federal Reserve Chair Kevin Warsh convened his third Federal Open Market Committee (FOMC) meeting on September 15 and 16, where the body responsible for setting interest rates decided to raise rates by a quarter percentage point for the first time since 2023. Despite inflation running above the Fed's 2% target for over five years, the Fed's new benchmark interest rate is now 3.75% to 4%.
Markets anticipate at least one more rate hike by year's end. However, President Donald Trump criticized the unanimous decision on social media, demanding lower interest rates. Upon arriving for a campaign rally, Trump blamed the board of governors for the decision, claiming they were "very political" and "doing the wrong thing."
Warsh, who took over the Fed earlier this year, has moved swiftly to implement his reform agenda through five task forces, each responsible for recommendations in different areas of the Fed's mandate.
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