WASHINGTON (AP) — The President donald trump On Friday, he oversaw the swearing-in of new appointees at the White House. federal reserve system I sat in the chair and said I wanted it. Kevin Warsh’s He helped stimulate the economy even as he sought to stress that the country’s central bank would remain independent.
Trump spent months criticizing Warsh’s predecessor. Jerome PowellThis was because the Republican president was reluctant to lower interest rates, arguing that lower borrowing costs would stimulate the economy. By taking the unusual step of holding the ceremony in the East Room rather than at the Fed, President Trump made it clear that he is happy that Warsh is now in charge.
of war with iran caused gasoline prices soarunstable financial market This caused concerns about inflation throughout the economy. The developments have led to recent doubts that Mr. Warsh will heed President Trump’s call and force the Fed to cut interest rates.
Still, Trump said he was confident Warsh would prioritize a strong economy.
“Thankfully, unlike some of his predecessors, Kevin understands that when the economy is strong, that’s a good thing,” the president said. President Trump said, “There’s no need to make a fuss. Just leave it alone. We want to make a boom.”
Supreme Court Justice Clarence Thomas administered the oath of office. House Speaker Mike Johnson (R-Louisiana), Justice Brett Kavanaugh, CIA Director John Ratcliffe, and Cabinet members also attended.
President Trump said of Warsh, “He will go down as one of the truly great chairs of the Federal Reserve that ever lived.”
In 1987, Republican President Ronald Reagan installed Alan Greenspan as Federal Reserve Chairman in the White House. When Ben Bernanke became Fed Chairman in 2006, Republican President George W. Bush attended the ceremony at the central bank’s headquarters.
But holding the event at the White House raises further questions about the Fed’s independence, as President Trump has always sought to bend an independent central bank to his will.
The Trump administration’s Department of Justice investigation with Mr. Powell Fed’s major building renovations. This sparked opposition from members of Congress, and the ministry closed its investigation. The Fed’s internal watchdog is currently addressing the issue. Mr. Powell’s term as chairman ended last week, but he has chosen to remain on the Fed board for the time being.
“Honestly, this is what I really mean. I don’t mean it any other way. I want Kevin to be completely independent,” Trump said in his remarks.
“I want him to be independent and do a great job,” Trump said. “Don’t look at me, don’t look at anyone. Just do your thing.”
But in the next breath, Trump said that under his predecessor, Democratic President Joe Biden, “the Fed has lost its way in the eyes of many in recent years.” Trump also suggested that Warsh aims to lead on policies that promote “positive economic growth,” and that doing so doesn’t have to mean higher inflation.
Trump also noted that the stock market was up on Friday. “It means they like you,” he said of Warsh.
Mr. Warsh has previously been harshly critical of the Fed’s policies, including low interest rates during the coronavirus pandemic, which he argued contributed to the nation’s biggest inflation spike in 40 years in 2021-2022. Recently, it has even echoed President Trump’s calls for lower interest rates.
Warsh said productivity gains from artificial intelligence will help the economy grow faster without stimulating inflation and allow the Fed to reduce borrowing costs. However, many Fed officials I don’t agree with the development of AI This would support a rate cut, especially since this technology has also been blamed for large-scale layoffs in the computer sector and other sectors of the economy.
On Friday, Warsh pledged to “lead a reform-minded Federal Reserve that learns from past successes and failures, moves away from static frameworks and models, and maintains clear standards of integrity and performance.”
He told Trump that he believes “the last few years have the potential to bring unparalleled prosperity and raise the standard of living for Americans from all walks of life. And the Fed has some part in that.”
Warsh also pointed out that the Fed’s mission is to “promote price stability and maximum employment. If we pursue these goals with wisdom, clarity, independence and determination, inflation will be lower, growth will be stronger, real take-home wages will rise, and America will be more prosperous.”
As he left the ceremony, Treasury Secretary Scott Bessent reinforced Trump’s message and predicted to reporters that Warsh would “do what’s right for inflation and growth.”
