Can Kevin Warsh Change the Federal Reserve?

Sep 19, 2026 11:00 AM UTCPhoto-Illustration by TIME (Source Images: Michael Nagle—BloombergGetty Images, Mehmet Eser—Anadolu/Getty Images)Roger W. Ferguson Jr. is the Steven A Tananbaum Distinguished Fellow for International Economics at the Council on Foreign Relations.Maximilian Hippold is an analyst at the Council on Foreign Relations. Sep 19, 2026 11:00 AM UTCOn 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...