New Chapter in Monetary Policy: The Impact of Kevin Warsh’s Arrival at the Fed

The appointment of former Federal Reserve director Kevin Warsh as the new president of the central bank in January 2026 marked a promising period for US monetary policy. Under Warsh's leadership, efforts focused on combating inflation through a series of innovative and ambitious measures. The global economic landscape was characterized by inflationary pressures affecting financial markets worldwide. For Warsh, overcoming these challenges hinged on a fundamental reformulation of monetary policy, or 'regime change,' as he defined the project. However, initial signs suggest that implementing these changes has faced complex challenges and unforeseeable economic variables. The rapid appreciation of the US dollar and gradual reduction in real interest rates are notable aspects of this new scenario, reflecting both the success and early setbacks of Warsh's approach. This article analyzes the first steps of this policy transformation, its immediate impacts, and potential future effects on the global financial market.