New US Federal Reserve chairperson Kevin Warsh vowed to be “reform-oriented” as he was sworn in at the White House on Friday, with President Donald Trump insisting the central bank chief would be “totally independent.”
Trump has exerted unprecedented pressure on the central bank to reduce interest rates, attempting to fire a Fed governor and pursuing a criminal probe against Warsh’s predecessor Jerome Powell.
“I will 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 called for central bankers to pursue their goals “with wisdom and clarity, independence and resolve,” adding that “inflation can be lower, growth stronger, real take-home pay higher, and America can be more prosperous” if they did so.
Trump, who frequently criticized and insulted Powell, praised Warsh and said he wanted him to be fully independent, before urging the Fed chair to let the economy “boom.”
“Kevin understands that when the economy is booming, that’s a good thing. We want to stop inflation, but we don’t want to stop greatness,” Trump said.
Speaking at an event later in the day, Trump vowed to get interest rates down “very quickly.”
Warsh has backed rate cuts in the past, even as the world’s largest economy faces inflation at a three-year high.
It is unusual for the chief of the Fed — an independent nonpartisan body that sets monetary policy according to a dual mandate on inflation and employment — to be sworn in at the White House.
The last central bank chief to do so was Alan Greenspan in 1987.
At his Senate confirmation hearing, Warsh insisted he would “absolutely not” be a puppet for Trump.
Loud ceremony
Supreme Court Justices Clarence Thomas and Brett Kavanaugh were among those in attendance at the glitzy ceremony on Friday, with the former administering the oath of office.
The court is due to rule on Trump’s attempt to fire Fed Governor Lisa Cook.
