Kevin Warsh has officially begun his term as Chairman of the Federal Reserve, pledging to uphold 'the best of the Fed's traditions' while also pursuing a reform agenda. In a memo to over 20,000 employees, he stressed the importance of aligning policies with the national interest and fostering an environment conducive to high-quality work. Warsh has appointed two conservative analysts, Daniel Heil and Paul Winfree, to guide him during this transition. His proposed reforms include reducing the Fed's $6.7 trillion balance sheet and reassessing how inflation is measured. Warsh's first significant engagement with the Fed will occur during the meeting on June 16-17, where he is expected to address economic conditions and monetary policy. His leadership comes at a time of uncertainty, with the Fed awaiting a Supreme Court decision that could challenge its independence, particularly concerning the status of Governor Lisa Cook. Warsh's approach marks a shift from his previous criticisms of the Fed's policies under former Chair Jerome Powell.