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President Donald Trump on Friday oversaw the White House swearing-in of Kevin Warsh as the new chair of the Federal Reserve, framing the move as supportive of economic growth while emphasizing that the central bank would remain independent. Trump said he would like Warsh’s help in stimulating the economy even as he sought to reassure that the Fed’s governance would not be pulled under White House control.

Trump 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. At the same time, the White House held the ceremony in the East Room rather than at the Federal Reserve, a step the AP said underscored Trump’s pleasure that Warsh is now in charge.

The new chair’s opening days arrive amid economic pressure tied to the war with Iran, which the AP said had contributed to higher gas prices, unsettled financial markets and renewed inflation concerns. Trump told those gathered that he had faith Warsh would prioritize a strong economy.

In remarks during the ceremony, Trump said: “Thankfully, unlike some of his predecessors, Kevin understands that when the economy is booming, it is, that’s a good thing.” Trump also said it was not necessary “to go crazy. Just let it go. We want it to boom.” As he discussed the Fed’s role, he predicted the stock market rise later on Friday and told reporters of Warsh, “That means they like you.”

Trump also named the independence issue directly, telling the room, “Honestly, I really mean this. This is not said in any other way: I want Kevin to be totally independent.” He then added, “I want him to be independent and just do a great job,” and said, “Don’t look at me, don’t look at anybody. Just do your own thing.” In the same remarks, however, Trump said that “in the eyes of many, the Fed has lost its way in recent years” under Powell, and he suggested Warsh would pursue policies designed to promote “positive economic growth” without necessarily driving higher inflation.

Supreme Court Justice Clarence Thomas administered the oath of office to Warsh. The AP said others on hand included House Speaker Mike Johnson, Republican Justice Brett Kavanaugh, CIA Director John Ratcliffe and Cabinet members. Trump also drew historical comparisons, noting that Republican President Ronald Reagan swore in Alan Greenspan at the White House in 1987 and that Republican President George W. Bush attended the 2006 ceremony at central bank headquarters when Ben Bernanke became chair.

Warsh’s remarks also reflected the focus on both the economy and inflation. The AP reported that Warsh promised “to lead a reform oriented Federal Reserve, learning from past successes and mistakes, both escaping static frameworks and models and upholding clear standards of integrity and performance.” He told Trump that he believes the “years can bring unmatched prosperity that will raise living standards for Americans from all walks of life,” adding that “the Fed has something to do with it.”

Warsh said the Fed’s mandate is “to promote price stability and maximum employment,” and argued that “when we pursue those aims with wisdom and clarity, independence and resolve, inflation can be lower; growth, stronger; real take home pay, higher and America can more prosperous.” He also said he expected productivity gains from artificial intelligence to help the economy grow more quickly without spurring inflation, a view the AP said some Fed officials dispute because they have pointed to AI-linked layoffs in the computer sector and other industries.

As Warsh left the ceremony, Treasury Secretary Scott Bessent reinforced Trump’s message, predicting to reporters that Warsh will “do the right thing for inflation and growth.”

sources:

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