President Donald Trump is set to formalize the transition at the Federal Reserve this Friday by swearing in Kevin Warsh as the new central bank chairman. This ceremony follows the U.S. Senate’s confirmation of the 56-year-old financier and lawyer earlier this week. Warsh steps into the role at a pivotal moment, as the institution faces the daunting task of managing persistent inflation while navigating political pressure from the White House regarding potential interest-rate cuts.

Warsh’s appointment, which was first reported by Fox Business, signals a potential turning point for the Federal Reserve as he officially takes over the reins from outgoing Chair Jerome Powell. After years of tension between the Oval Office and the Fed—compounded by the global pandemic and economic volatility—many observers are looking to Warsh to establish a more harmonious relationship between the central bank and the executive branch. All eyes will be on how he balances these external expectations with the Fed’s core mandate of economic stability.