Trump wants new Fed chair to be 'totally independent'

President Donald Trump urged the incoming Federal Reserve Chairman, Kevin Warsh, to remain "totally independent" during a White House swearing-in ceremony on Friday.

Trump, who repeatedly and publicly clashed with Warsh's predecessor, Jerome Powell, stated that he wants his new pick to ignore outside opinions. "I really mean this, I want Kevin to be totally independent. Don't look at me, don't look at anybody, just do your own thing and do a great job, okay," Trump said.

The decision to host the ceremony at the White House marks the first time the venue has been used to swear in a Fed chair since Alan Greenspan in 1987. Critics of the appointment, including senior Democratic Senator Elizabeth Warren, had previously warned that Warsh would act as a "sock puppet" for President Trump.

Prior to Warsh's appointment, Trump repeatedly called on Powell and the central bank to cut interest rates to boost economic growth. He also stated that supporting an immediate reduction in U.S. borrowing costs was a requirement for anyone to be considered for the position.

However, the central bank has delayed expected rate cuts as it assesses the impact of the US-Israel war in Iran on inflation. The Fed held its interest rate between 3.5% and 3.75% in April, and economists now expect the rate to remain at that level for the rest of 2026, with some forecasting an increase. Higher interest rates increase borrowing costs for consumers, which helps cool inflation by slowing spending.

Trump defended his choice against critics, stating that "no one in America is better prepared" to lead the central bank. He called for Warsh to let the economy "boom" during his tenure and asserted that the central bank had "lost its way" under Powell's leadership. Trump claimed the Fed had become distracted by issues unrelated to stable prices, low inflation, and full employment, straying instead into climate change and diversity, equity, and inclusion (DEI).

Warsh, a former Wall Street banker, faces the challenge of managing a deeply fractured economic landscape while convincing skeptical politicians and the public of his independence from White House interference.

During the ceremony, Warsh vowed to lead a "reform-oriented" Federal Reserve. He told Trump, "these years can bring unmatched prosperity that will raise living standards for Americans from all walks of life."