Kevin Warsh officially became chairman of the Federal Reserve in a ceremony held at the White House on Friday, with President Trump presiding over the swearing-in administered by Supreme Court Justice Clarence Thomas. The decision to hold the event at the White House rather than at Federal Reserve headquarters represented an unusual choice that underscored Trump’s satisfaction with the leadership transition.
Trump has spent considerable time criticizing Warsh’s predecessor, Jerome Powell, over interest rate policy, with the president advocating for lower borrowing costs as a means to stimulate economic growth. Throughout his remarks at the ceremony, Trump stated his desire for Warsh to help boost the economy while simultaneously emphasizing that the central bank should maintain its independence. Trump told Warsh directly: “I want Kevin to be totally independent” and urged him to “just do your own thing” without regard to external pressures.
However, Trump’s comments also reflected his ongoing concerns about Federal Reserve policy, asserting that the institution “has lost its way in recent years” and suggesting that Warsh would pursue policies promoting economic growth. The president noted that stock market gains on the day of the ceremony indicated market approval of the new leadership. Warsh has previously criticized the Fed’s low interest rate policies following the coronavirus pandemic, which he contends contributed to significant inflation in 2021-2022, and has sometimes aligned with Trump’s calls for rate reductions.
Warsh indicated his approach would focus on pursuing reforms while learning from both successes and failures, committing to uphold standards of integrity and performance. He framed the Fed’s dual mandate of promoting price stability and maximum employment as compatible with achieving lower inflation, stronger growth, and improved real wages. The ceremony was attended by various officials including House Speaker Mike Johnson, Justice Brett Kavanaugh, CIA Director John Ratcliffe, and Treasury Secretary Scott Bessent, who reinforced the administration’s confidence in Warsh’s ability to address inflation and growth concerns.
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