Federal Reserve Chair Kevin Warsh, sworn in on May 22, 2026, has signaled he will model his leadership after Alan Greenspan, the former Fed chair who led the central bank through the 1990s technology boom. Warsh’s invocation of Greenspan represents a deliberate choice to adopt an approach centered on productivity growth and flexible monetary policy during periods of rapid technological change.
“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 his swearing-in ceremony at the White House on May 22. “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 because he saw that inflation was not rising and thus productivity must be increasing, negating the need to raise rates. This flexible approach to monetary policy during periods of technological disruption forms the intellectual foundation of Warsh’s stated framework.
Treasury Secretary Scott Bessent, who favored Warsh to be Fed chair, frequently cites Greenspan as a historical model for managing the US 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. “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 January 8.
Warsh has built much of his policy framework around a similar productivity thesis. He has argued that adoption of artificial intelligence will boost productivity, lower inflation, and create a path for the Fed to cut rates. During his confirmation hearing, Warsh stated that he believes members of the Fed should speak less frequently, pull back forward guidance, and stop telegraphing what the central bank will do before interest rate meetings—all practices that resemble the Greenspan era.
The Greenspan approach proved influential during a period of sustained economic expansion. When comparable periods of rapid technological change have emerged, central bankers have faced the challenge of distinguishing genuine productivity gains from temporary economic booms. Warsh’s explicit embrace of this framework signals his intention to give the Fed flexibility in responding to what he views as a transformative moment in artificial intelligence.
Sources
- Yahoo Finance — Full text of Warsh’s swearing-in remarks and his stated intention to follow Greenspan’s approach; details on Greenspan’s 1990s rate strategy and Bessent’s endorsement of that model
- Federal Reserve — Official announcement of Warsh’s oath of office as chairman on May 22, 2026
