The Ghosts of 1987 Appear: Kevin Warsh, Alan Greenspan, and How to Invest Safely Under a New Fed Chair

Kevin Warsh was sworn in as the 17th chair of the Federal Reserve on Friday, May 22, in a White House East Room ceremony that highlighted the administration’s desire for centralized monetary leadership. The televised event marked the first time a Fed chair took his oath at the White House since Alan Greenspan in 1987, a symbolic signal of closer executive involvement. The piece draws a line to Greenspan’s debut amid inflation fears and policy shifts, and recalls Black Monday, October 19, 1987, when the market fell more than 20 percent in a single day, with references to the S&P 500 and Dow. Analysts say the ceremony sent a market message about independence, though outcomes will require 6 to 12 months to become clear. The narrative frames Warsh’s inauguration as a potentially consequential moment rooted in past turmoil, with the specific implications for policy and liquidity still to be determined.