Can Kevin Warsh Change the Federal Reserve?

On Sept.

15 and 16, Federal Reserve Chair Kevin Warsh presided over his third Federal Open Market Committee (FOMC) meeting, the body responsible for setting the interest rates that shape the American economy.

With August jobs numbers coming in stronger than analysts expected, the Fed unanimously decided to raise interest rates by a quarter percentage point for the first time since 2023.

Its new benchmark interest rate sits at a target range of 3.75% to 4%, and markets are expecting at least one additional interest rate hike by the end of the year.

That decision unfolded against a striking backdrop: inflation has run above the Fed's 2% target for more than five and a half years.

“The plain fact is that inflation is too high and has been for too long,” stated Warsh.

Few economists disagreed with Warsh’s determination and the Fed’s decision—but President Donald Trump did.

Trump quickly critiqued the committee’s undivided vote to raise rates via social media.

“LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!” he cried.

And upon landing in North Carolina for a campaign rally, the president told reporters he blamed Warsh’s Board of Governors for the decision.

“I told Kevin, I said, ‘You might as well vote with the board because it’s just not going to matter.’ The board is very hostile,” he said.

“They’re very political.

They’re doing the wrong thing.

They’re a bunch of politicians.” Warsh took the helm of the more than century-old institution earlier this year and has moved quickly to put his stamp on it, launching five task forces within his first month, each charged with developing recommendations across a different area of the Fed's mandate.