Kevin Warsh is now at the helm at the Federal Reserve.
President Trump’s pick to lead the central bank took over Friday after being confirmed by the Senate this week.
And Warsh will be immediately thrust into debate about the best route for the Fed’s monetary policy.
President Trump has long made it clear what he wants from the new chair:
CNBC's Becky Quick: Will you be disappointed if your new Fed chair, if he gets approved, doesn't cut rates right away?
President Donald Trump: I would.
But new economic data this week shows the highest rate of inflation in three years is set to put Warsh in a potentially tricky position.
"The rules go, if inflation's too high, you raise interest rates. If inflation's too low, you lower interest rates," said Thomas Stockwell, assistant professor of economics at the University of Tampa.
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But Democrats worry Warsh will be more influenced by President Trump than economic data.
Scripps News' Nathaniel Reed: Do you think there’s any chance he could raise interest rates given what we’ve seen with inflation numbers?
Sen. Elizabeth Warren (D-MA): He’ll do whatever Donald Trump tells him to do.
Warsh, for his part, says he’s committed to acting independent of pressure from the president.
“Let me be very clear: monetary policy independence is essential," he said.
But he also says that the Fed needs to re-evaluate how it examines inflation.
“I think the data that's being used to judge inflation is quite imperfect data,” Warsh said.
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As the new head of the central bank, it will now be Warsh’s actions, not words, that could be felt by American consumers.
“Monetary policy is the engine of the macro economy. It is the most powerful force in the economy. It determines the price of every loan and the value of every home," said Ejindu Ume, associate professor of economics at Miami University.
"The Fed chair, as leader of the Fed, brings the fed to make choices about interest rates," said Sarah Binder, professor of political science at George Washington University. "Those decisions affect everybody in the United States, and that's why who leads the Fed is so important."
