New Fed Chair Kevin Warsh Signals Greenspan-Style Monetary Policy Approach

By Jennifer Schonberger · Senior Reporter Sun, May 24, 2026 at 6:50 AM PDT · 4 min read

Newly sworn-in Federal Reserve Chair Kevin Warsh offered telling comments Friday about how he may govern as head of the U.S. central bank, harkening back to former Chair Alan Greenspan and implying he is setting himself up in Greenspan's mold.

"I've known five of my predecessors in this job, some of them quite well. But Chairman Greenspan was the first to tell me and show me what this role demands," Warsh said during a ceremony in the East Room. "Like Alan, I intend to fill the role of chairman with energy and purpose, just the way Chairman Greenspan did."

Greenspan is known for holding rates steady rather than raising them during the internet boom of the 1990s, as he saw that inflation was not rising and productivity must be increasing, negating the need to raise rates.

Treasury Secretary's Influence

Treasury Secretary Scott Bessent, who favored Warsh for Fed chair, frequently cites Greenspan as a historical model for managing the U.S. economy. Bessent favors Greenspan's approach of resisting premature interest rate hikes during technological booms, advocating that the Fed keep monetary policy flexible to encourage growth.

Bessent argues that Fed officials should maintain an open mind and lower interest rates to spur investment. He often calls for the central bank to emulate Greenspan's resistance to premature rate hikes to foster non-inflationary growth.

"The Fed needs to have merely an open mind. The open-minded maestro, former Fed Chairman Alan Greenspan, resisted premature rate hikes during the technology boom of the 1990s — and history proved him right," Bessent said in a speech on Jan. 8.

Warsh's Policy Stances

Warsh said last year that he believed adoption of artificial intelligence would boost productivity, lower inflation, and create a path for the Fed to cut rates. During his confirmation hearing, he also stated that:

• Members of the Fed should speak less frequently
• The central bank should pull back forward guidance
• The Fed should stop telegraphing its actions before interest rate meetings

Additionally, Warsh did not commit to holding a press conference after every policy meeting — a practice put in place by current Chair Jerome Powell that is closely watched by investors.

All of these positions resemble practices from the Greenspan era.

Remarks on the Fed's Mandate

"Our mandate at the Fed is to promote price stability and maximum employment," Warsh said. "When we pursue those aims with wisdom and clarity, independence and resolve, inflation can be lower, growth stronger, real take-home pay higher."

President Trump's Comments

President Trump, during his speech on Friday, suggested he wants lower interest rates to help pay down the national debt. The president noted that lower rates would allow economic growth to boom and that would not necessarily mean inflation — something Warsh has also said — but that growth would also help the U.S. grow its way out of debt.

Kevin Warsh (L) shakes hands with U.S. President Donald Trump after being sworn in as the new Chairman of the Federal Reserve in the East Room of the White House on May 22, 2026 in Washington, D.C. (Roberto Schmidt/Getty Images)