President Donald Trump oversaw the swearing-in of Kevin Warsh as the new chair of the Federal Reserve during a ceremony in the White House East Room on Friday, according to the Associated Press. The event marked an unusual departure from the tradition of holding such transitions at the central bank’s own headquarters, and Trump used the occasion to publicly call for Warsh’s assistance in stimulating the economy.
Trump said he would like Warsh’s help in stimulating the economy, the AP reported, even as he sought to emphasize that the Federal Reserve would remain independent. The president spent months criticizing Warsh’s predecessor, Jerome Powell, for being reluctant to cut interest rates, arguing that lower borrowing costs would provide an economic boost.
By holding the ceremony at the White House rather than at the Federal Reserve’s headquarters, the AP reported, Trump made clear his approval of the leadership transition. The choice of venue is a rarity for a Fed chair swearing-in and has drawn attention to the relationship between the White House and the institution whose policy-making autonomy has been a foundational element of U.S. economic governance.
Warsh assumes leadership of the central bank at a moment of heightened economic uncertainty. The ongoing war with Iran has caused gas prices to spike, unsettled financial markets, and driven inflation concerns across the economy. Those developments have led to recent questions, the AP reported, about whether Warsh might respond to Trump’s calls and push the Fed to lower interest rates.
Warsh’s confirmation by the Senate earlier this month capped a months-long nomination process that drew scrutiny from lawmakers and economists alike. The transition from Powell to Warsh has been closely watched as a test of the Fed’s institutional independence amid sustained public pressure from the White House for looser monetary policy.