Kevin Warsh sworn in as Federal Reserve chair; I want him to be totally independent, Trump says

Kevin Warsh was sworn in Friday as the new chairman of the Federal Reserve, taking over leadership of the world’s most powerful central bank at a moment of rising inflation fears, market jitters and ongoing concerns about the entity’s independence.President Donald Trump said at a White House ceremony Warsh would be “totally independent” “I want Kevin to be totally independent,” he said.“Don’t look at me, don’t look at anybody.”Supreme Court Justice Clarence Thomas swore in Warsh, 56, whom the Senate confirmed as chair last week.“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 succeeds Jerome Powell, who has the option to remain on the Fed’s board through January 2028.

In a break from precedent, Powell has indicated he’ll take that step after years of Trump blasting him for failing to lower interest rates quickly enough.The transition comes as inflation remains above the Fed’s 2% target and policymakers debate whether rates may need to rise again despite Trump’s long-running demands for cuts.Bond traders are already betting Warsh may have to raise interest rates before the end of the year — a dramatic reversal from earlier Wall Street expectations that Trump’s handpicked Fed chief would usher in rapid rate cuts.Markets sharply repriced Friday after Fed Governor Christopher Waller warned policymakers should remain open to additional tightening as inflation pressures intensify, underscoring the economic minefield Warsh inherits on day one.The former Morgan Stanley banker has repeatedly argued the Fed kept policy too loose for too long and allowed inflation to spiral.He has also blasted the central bank’s massive bond-buying campaigns and promised to shrink the Fed’s balance sheet.During his confirmation hearings, Warsh declared that “inflation [is] the Fed’s choice,�...