President Trump told Kevin Warsh to be “totally independent” as he swore him in as chairman of the Federal Reserve in front of a who’s who of Washington conservatives at the White House.
Mr. Trump’s insistence on independence was notable after he repeatedly cajoled the most recent Fed chair, Jerome Powell, to cut interest rates.
“I want him to be independent and just do a great job,” Mr. Trump said Friday in the East Room. “Don’t look at me, don’t look at anybody. Just do your own thing and do a great job.”
At the same time, Mr. Trump said he doesn’t want the Fed to impede growth, a not-so-subtle reference to his desire to cut interest rates even as some central bankers fret over rising inflation.
“We don’t want to see it stifled,” Mr. Trump said as Mr. Warsh stood a few feet away. “We want to stop inflation, but we don’t want to stop greatness.”
Mr. Warsh, 56, is taking over the central bank at a complex time.
Earlier this month, the Labor Department said the consumer price index — a key measure of inflation — rose 3.8%, year over year, in April. It was the biggest increase in three years.
The reading was well above the Fed target rate of 2%.
The war with Iran sent energy prices soaring, and central bankers were already skittish about inflation due to Mr. Trump’s tariffs on foreign goods.
The Fed has a dual mandate to maintain maximum employment and keep prices stable. It kept interest rates steady this year after implementing three small cuts in late 2025 to help a sluggish labor market.
With Mr. Trump pushing for cuts, Mr. Warsh and the Fed could face thorny decisions, given persistently high prices.
Mr. Warsh did not signal any promises on rates, though he signaled he shared Mr. Trump’s optimism about growth.
“While I’m not naive about the challenges we face, I believe, Mr. President, these years can bring unmatched prosperity that will raise living standards for Americans from all walks of life, and the Fed has something to do with it,” Mr. Warsh said. “Inflation can be lower, growth stronger, real take-home pay higher and America can be more prosperous.”
Mr. Warsh is a former Fed governor who served from 2006 to 2011. He was a key liaison between the Fed and Wall Street during the financial crisis of 2008-09.
“He’s got abilities that very few people have,” Mr. Trump said in front of a White House crowd of conservative VIPs, including congressional leaders, Supreme Court Justices Clarence Thomas and Brett M. Kavanaugh, and returnees such as former House Speaker Kevin McCarthy and former Vice President Dan Quayle.
Justice Thomas delivered the oath of office to Mr. Warsh, who called the role a “great honor” and thanked congressional leaders who guided him to confirmation.
“With this oath, I have accepted a high and solemn responsibility,” Mr. Warsh said.
He’s assuming the chair after Mr. Powell’s term ended in mid-May.
Mr. Powell faced frequent personal attacks from the president and a criminal inquiry over cost overruns with the Fed building renovation. Prosecutors transferred the investigation to an inspector general after courts and some Republican lawmakers said the inquiry appeared to be a pretext to harass the chairman.
The Senate confirmed Mr. Warsh on May 13 in a 54-45 vote.
Only one Democrat, Sen. John Fetterman of Pennsylvania, crossed the aisle to support the nominee, with Massachusetts Sen. Elizabeth Warren warning that Mr. Warsh would be a “sock puppet” who did Mr. Trump’s bidding.
Contact the author
Please read our comment policy before commenting.