Kevin Warsh was sworn in as the new chairman of the Federal Reserve on Friday during a high-profile ceremony at the White House, officially taking control of the powerful central bank from Jerome Powell. The event took place in the grand East Room, where President Donald Trump introduced Warsh before an audience packed with Supreme Court justices, members of Congress, Cabinet officials, and leading business figures.
Oath of Office Administered by Justice Thomas
In a moment underscoring the formality of the occasion, Supreme Court Justice Clarence Thomas administered the oath of office. Warsh placed his hand on a Bible held by his wife as he pledged to take on the role. Attendees included Justice Brett Kavanaugh, former House Speaker Kevin McCarthy, Kevin Hassett, and Harold Ford Jr.
Trump Calls for Independence
President Trump, speaking warmly yet pointedly, made a striking appeal for independence in the new Fed chair's leadership. '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 and do a great job, OK?'
He went on to lavish praise on Warsh, predicting a historic tenure at the helm of the central bank. The president said he believes Warsh 'will go down as one of the truly great chairmen of the Federal Reserve that we've ever had,' adding that he possesses 'abilities that very few people have' and is 'respected by everybody.'
Contrast with Powell's Tenure
Trump has made no secret of his ambitions for the Federal Reserve, repeatedly urging the central bank over the past year to move aggressively to cut interest rates. He has accused outgoing chair Powell of moving too slowly and too cautiously in easing monetary policy, arguing that faster cuts would help stimulate economic growth and reduce borrowing costs for households and businesses.
Trump's criticism of Powell has often been blistering, at times breaking sharply with traditional presidential restraint. The president has described him as a 'numbskull,' a 'stubborn mule,' and a 'moron,' and has even publicly suggested he could be removed from office.
Allegations of Pressure on Powell
The tense backdrop has been further complicated by allegations surrounding pressure on Powell. He claimed the Justice Department opened a criminal investigation in an effort to intimidate him, an assertion denied by prosecutors but later acknowledged in part by a judge. The inquiry was ultimately dropped last month, with responsibility handed to the Federal Reserve's internal watchdog.
Powell has led the Fed since 2018, overseeing a turbulent period that included the economic shock of the COVID-19 pandemic and the sharp inflation surge that followed, one of the most challenging stretches for US monetary policy in decades.
