Kevin Warsh has been sworn in as chair of the US Federal Reserve, hand-picked by President Donald Trump to lead the central bank as the administration faces mounting criticism over its economic policies. Warsh, a former Fed governor and Wall Street banker, takes over from Jerome Powell, whom Trump had repeatedly attacked for refusing to cut interest rates.
Warsh pledged to lead a “reform-oriented Federal Reserve,” promising lower inflation and stronger growth. However, his appointment has angered Republicans and independent voters, with a new poll showing 68% of Americans believe Trump is prioritising his immigration crackdown over the economy. Fuel prices have surged to $4.55 a gallon, up $1.35 from a year ago, as the US-Israel war on Iran drives costs higher.
Trump claimed he wants Warsh to be “totally independent,” but his criticism of the Fed under Powell has raised fears over the central bank’s longstanding independence. Warsh’s refusal to answer whether Trump lost the 2020 election has also drawn alarm among Democrats, with Senator Elizabeth Warren calling him “Donald Trump’s sock puppet.”
The swearing-in ceremony at the White House featured a standing ovation from attendees including Supreme Court justices and former officials. Yet beyond the event, confidence in the economy has hit a four-year low according to a Gallup poll, with 49% of respondents rating current conditions poorly.
