BY EMMANUEL OGBONNA
President Donald Trump on Friday personally oversaw the swearing-in ceremony of new Federal Reserve Chair Kevin Warsh at the White House, using the occasion to signal confidence that the nation’s central bank would support stronger economic growth while also insisting that the Fed would remain independent under its new leadership.
The ceremony, held in the East Room of the White House rather than at Federal Reserve headquarters, underscored Trump’s enthusiasm over the leadership transition following months of public criticism aimed at outgoing Fed Chair Jerome Powell. Trump had repeatedly faulted Powell for resisting aggressive interest rate cuts, arguing that lower borrowing costs were necessary to accelerate economic expansion and strengthen financial markets.
Standing before an audience that included senior administration officials, lawmakers and members of the Supreme Court, Trump praised Warsh as a leader who understands the importance of allowing economic momentum to continue without unnecessary intervention from policymakers.
“Thankfully, unlike some of his predecessors, Kevin understands that when the economy is booming, that’s a good thing,” Trump said during the ceremony. “It’s not necessary to go crazy. Just let it go. We want it to boom.”
The event came at a sensitive moment for the U.S. economy. Rising tensions and military conflict involving Iran have driven up global oil prices, increased concerns about inflation and rattled financial markets. Those developments have intensified scrutiny over how Warsh will approach monetary policy in the months ahead and whether he will support Trump’s longstanding push for lower interest rates despite persistent inflation risks.
Trump nevertheless expressed confidence that Warsh would strike the right balance between economic growth and price stability. The president predicted that the new Fed chair would be remembered as one of the institution’s most successful leaders.
“I expect he will go down as one of the truly great chairmen of the Federal Reserve that we’ve ever had,” Trump said.
Supreme Court Justice Clarence Thomas administered the oath of office as prominent Republican figures looked on, including House Speaker Mike Johnson, Justice Brett Kavanaugh, CIA Director John Ratcliffe and several Cabinet officials.
The White House setting for the ceremony immediately fueled renewed debate over the Federal Reserve’s independence from political influence. While presidents have occasionally participated in swearing-in ceremonies for Fed chairs in the past, such events are traditionally associated with the central bank itself rather than the White House.
The move also comes after months of mounting tensions between Trump and Powell. Trump’s Justice Department had earlier launched an investigation into the Federal Reserve’s costly building renovation projects, a decision that sparked criticism from lawmakers and outside observers who viewed it as political pressure on the central bank. The department later dropped the investigation, leaving the matter to the Fed’s internal watchdog. Powell’s term as chair officially ended last week, though he has chosen to remain on the Federal Reserve Board for the time being.
Attempting to address concerns about political influence, Trump emphasized repeatedly during his remarks that he wanted Warsh to operate independently.
“Honestly, I really mean this. This is not said in any other way: I want Kevin to be totally independent,” Trump said. “I want him to be independent and just do a great job. Don’t look at me, don’t look at anybody. Just do your own thing.”
Yet moments later, the president sharply criticized the Federal Reserve’s direction under the administration of former President Joe Biden, arguing that the central bank had “lost its way” in recent years. Trump also suggested that Warsh would pursue policies aimed at promoting stronger growth without reigniting inflationary pressures.
The president pointed to Friday’s gains on Wall Street as evidence that investors welcomed Warsh’s appointment. “That means they like you,” Trump told the new Fed chair.
Warsh enters the role with a long record of criticism toward previous Federal Reserve policies. Following the coronavirus pandemic, he argued that the Fed kept interest rates too low for too long, helping fuel the sharp inflation surge that hit the United States during 2021 and 2022 — the highest inflation spike in roughly four decades.
More recently, however, Warsh has echoed some of Trump’s arguments in favor of lowering borrowing costs. He has increasingly promoted the view that advances in artificial intelligence could significantly boost productivity across the economy, allowing the United States to achieve stronger growth without triggering higher inflation.
According to Warsh, those productivity gains could create room for the Federal Reserve to gradually lower interest rates while maintaining price stability. Many current Fed officials remain skeptical of that argument, particularly as rapid AI adoption has also been linked to major layoffs in technology and white-collar industries.
In his remarks Friday, Warsh pledged to modernize the central bank while learning from its past mistakes.
“I intend 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,” Warsh said.
He added that the coming years could produce extraordinary economic gains if the United States successfully harnesses technological innovation and sound policymaking.
“I believe these years can bring unmatched prosperity that will raise living standards for Americans from all walks of life,” Warsh said. “And the Fed has something to do with it.”
Warsh also reaffirmed the Federal Reserve’s dual mandate of maintaining stable prices and maximizing employment, emphasizing that the institution must act with independence and discipline.
“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 be more prosperous,” he said.
As the ceremony concluded, Treasury Secretary Scott Bessent echoed the administration’s optimism about the Fed’s new leadership, telling reporters that Warsh would “do the right thing for inflation and growth.