President Donald Trump participated in the swearing-in ceremony for new Federal Reserve chairman Kevin Warsh, encouraging his complete autonomy as chief of the central bank.
Warsh was sworn in at the White House East Room as Supreme Court Justice Clarence Thomas administered the oath of office.
Trump chose Warsh to succeed Jerome Powell after repeatedly criticizing his handling of interest rates and monetary policy. The president did not mention Powell by name at Friday's ceremony, but alluded to his dissatisfaction with the Fed under his leadership.
"With the Fed straying from its mandate, while the last administration blew out the deficit, Americans suffered the worst inflation that we had in history. It was the worst inflation we've ever had. Kevin will restore confidence in the Fed, which is so important," Trump added.
The new Fed chief acknowledged the significance of his role at “a time of great consequence” and promised to lead a “reform-oriented” Federal Reserve while learning from past mistakes and successes.
Warsh assumes office at a crucial time in which the Federal Reserve considers raising rates to tame inflation triggered by the U.S.-Israel war on Iran.
During confirmation hearings, Warsh said he supported many of the same policies as Trump officials, but vowed to maintain autonomy from the White House. Warsh told senators that he never promised Trump that he would cut interest rates and pledged to be “an independent actor” if confirmed as chair. Trump previously stated that he would be disappointed if Warsh did not immediately cut rates.
A majority of Fed policymakers at their April meeting felt "some policy firming would likely become appropriate" if inflation stays persistently above the central bank's 2 percent target.
Warsh became the youngest member of the board at 35 years old, serving as Fed governor from 2006 to 2011 under the George W. Bush administration. Warsh was passed over for the role as Fed chief in 2017 during Trump's first term. Trump instead chose Powell to lead the central bank, a decision he later explained was made based on bad advice.
Warsh will serve a four-year term as chair and a 14-year term as Fed governor.