Kevin Warsh, the Federal Reserve (the Fed) chairman sworn in to replace Jerome Powell in May, is preparing for sweeping reforms of the institution, according to a memo seen by Reuters.

In an opening note to the central bank’s staff, Warsh pledged to follow “the best of the Fed’s traditions”, while looking for ways to do things differently, the news outlet reported.

"We won’t rely on past practices when we find better alternatives," Warsh ⁠said. "In the coming quarters, I expect that together we will have open, clear-eyed discussions of Fed strategies, policies, and operations."

Warsh had been highly critical of Powell’s handling of the Fed in the leadup to his swearing-in, accusing it of moving beyond monetary policy considerations.

Now he is in charge, however, his tone has shifted. Reuters reported he wrote that “This new chapter at the Fed finds us in a time of great consequence for our nation. New technologies and new ways of doing business are arriving with unmatched speed […] I could not be more optimistic about all that we can achieve together.”

Separately, Warsh has appointed two conservative analysts to advise him during his transition, the outlet reported, citing a source familiar with the matter. Daniel Hell is a policy fellow at Stanford University’s Hoover Institution, where Warsh previously worked.

Paul Winfree is a former employee of the right-wing Heritage Foundation who put together the chapter on Federal Reserve reform in its controversial Project 2025 policy document.

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