In a White House ceremony that brought the Federal Reserve chairship directly into the political spotlight, President Donald Trump on Friday swore in Kevin Warsh as the next chair of the Federal Reserve, making clear he wants the new leader focused on economic growth. Trump oversaw the event in the East Room and paired Warsh’s arrival with language about both independence for the central bank and a desire for stronger near-term performance from the economy.
Trump’s remarks followed months of public criticism of Warsh’s predecessor, Jerome Powell, over Powell’s stance on interest rates. Trump has argued that lower borrowing costs would support the economy, and the president portrayed Warsh’s new role as an opening for that approach. Trump also emphasized that it was not necessary “to go crazy,” saying, “Just let it go,” and adding, “We want it to boom.”
The president said he had “faith” Warsh would prioritize a strong economy, while also insisting the Federal Reserve would not be pulled directly into the administration’s agenda. Trump told the audience: “Honestly, I really mean this. This is not said in any other way: I want Kevin to be totally independent,” and later said he wanted Warsh “to be independent and just do a great job,” adding, “Don’t look at me, don’t look at anybody. Just do your own thing.” At the same time, Trump referenced his view that the Fed “has lost its way in recent years” under Powell and during the Biden administration, using the comments to frame the leadership transition.
Supreme Court Justice Clarence Thomas administered the oath of office to Warsh. Other officials at the ceremony included House Speaker Mike Johnson, Justice Brett Kavanaugh, CIA Director John Ratcliffe, and Cabinet members, and Trump described Warsh’s appointment as historically significant, saying he expected Warsh “will go down as one of the truly great chairmen of the Federal Reserve that we’ve ever had.”
The swearing-in also highlighted questions about the independence of the central bank, reinforced by Trump’s earlier moves and the setting of the ceremony itself. By holding the event at the White House rather than at the Federal Reserve, Trump made what the Associated Press described as a signal of pleasure that Warsh was now in charge. The AP report noted that Trump has constantly sought to bend the independent central bank to his will, and pointed to the administration’s earlier actions surrounding the Powell-era Fed, including a Justice Department investigation that lawmakers criticized before the department dropped the inquiry and referred the matter to the Fed’s internal watchdog.
In his own comments, Warsh addressed the policy debate over whether the Fed should cut rates amid inflation concerns tied to current economic stress. The AP report said the war with Iran has contributed to gas-price increases, unsettled financial markets, and renewed inflation worries, raising uncertainty about whether Warsh would heed Trump’s calls for lower rates. Warsh told Trump he would lead what he described as “a reform oriented Federal Reserve,” saying the Fed should escape “static frameworks and models” while upholding “clear standards of integrity and performance.”
The report also described Warsh’s argument that artificial intelligence productivity gains could help growth without fueling inflation, giving the Fed room to reduce borrowing costs. The AP said Warsh has argued that AI-driven productivity improvements would let the economy grow more quickly “without spurring inflation,” but that many Fed officials disagree, in part because the technology has been blamed for large-scale layoffs in the computer sector and other parts of the economy.
Warsh further described the Fed’s mandate as promoting “price stability and maximum employment,” saying that when the central bank pursues those aims with “wisdom and clarity,” inflation can be lower while growth is stronger. As he left the ceremony, Treasury Secretary Scott Bessent told reporters that Warsh would “do the right thing for inflation and growth,” reinforcing the administration’s public message that the Fed should deliver results on both inflation and economic growth.