Warsh says he’ll lead ‘reform-oriented’ US central bank
Kevin Warsh was sworn in as the new chairman of the Federal Reserve, turning a new page after the tense relationship between the world’s most powerful central bank and US President Donald Trump.
Speaking after taking the oath of office at the White House, Warsh vowed to be “reform-focused” and said he would carry out his duties with “energy and purpose.”
He said the coming years “could bring unparalleled prosperity that will raise the living standards of Americans from all walks of life.”
Trump, who chose Warsh for the job, had repeatedly and unsuccessfully pushed for lower interest rates while criticizing previous Fed chairman Jerome Powell.
The president argues that lower borrowing costs will boost economic growth, investment and consumer spending, but critics warn that cutting interest rates too aggressively could further increase inflation.
Trump’s repeated criticism of the Fed has raised concerns about the central bank’s political independence.
“Fortunately, unlike some of his predecessors, Kevin understands that when the economy grows, that’s a good thing,” Trump said.
Trump added that he and Warsh agreed that fighting inflation should not harm economic growth.
“It aims to achieve positive economic growth. This is very important,” the President said.
He said Warsh would return the Fed to its core mission of maintaining price stability and full employment.
Trump also emphasized the agency’s independence.
Addressing Warsh directly, Trump said, “Don’t look at me, don’t look at anyone, just do your own thing and do a great job.”
Warsh pledged to “lead a reform-oriented Federal Reserve by learning from past successes and mistakes, both escaping static frameworks and models and maintaining clear standards of integrity and performance.”
Interest rate decisions are made collectively by the Fed’s policy-making committee.
The Fed is authorized by Congress to operate independently of political influence.
The Fed cut interest rates by 25 basis points three times in 2025, citing concerns about the labor market.
It later suspended its first three meetings this year due to rising inflation due to the war in which Iran was involved.
with AP
