Independent Fed Chair or Trump Puppet? Kevin Warsh Outlook

Professor Farrokh Langdana  gives a deep dive into the history of the U.S. Federal Reserve’s impact on major macroeconomic events leading to the nomination of Kevin Warsh as the new Fed chair. He outlines the institutional structure of the Fed from its beginnings in 1913 to the present date, goes through the Gold Standard and its abandonment by President Nixon in 1971, and then discusses how other presidents – Truman, Nixon, Carter – all had "their man" in the Fed and how all of them were sorely disappointed. 

When Warsh enters the Fed, he faces a hard decision – head off an oil-driven inflationary shock or move to cushion a likely economic slowdown.

In his typical folksy and whimsical way, Langdana delivers an easy-to-understand overview of the global forces shaping the U.S. economy and how they might affect the new Fed chair’s policies in the future.

Originally aired May 6, 2026.

See more of Professor Langdana's blogs and articles, including his Fireside Chats, pertaining to current global fiscal and monetary policy analyses, click here.

Dr. Farrokh Langdana is a professor of finance and economics at Rutgers Business School, and director of the globally ranked Rutgers Executive MBA Program—The Powerhouse. He is the recipient of more than 30 teaching awards, including the highest possible teaching award at Rutgers University – the Warren I. Susman Award. All the opinions and analyses expressed here are his, and not necessarily those of Rutgers Business School.