Donald Trump urged incoming Federal Reserve Chairman Kevin Warsh to operate with complete independence during a White House swearing-in ceremony held on Friday afternoon.
The US president, who repeatedly and publicly clashed with Warsh’s predecessor Jerome Powell, told his new pick to ignore outside opinions entirely when making decisions.
“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.
Critics of the appointment, including senior Democratic Senator Elizabeth Warren, had warned that Warsh would serve as little more than a “sock puppet” for President Trump.
Trump chose to host the ceremony at the White House itself, the first time the building has been used to swear in a Fed chair since Alan Greenspan took the role in 1987.
In the lead-up to Warsh’s appointment, Trump repeatedly called on Powell and the central bank to cut interest rates as a means of boosting economic growth across the country.
Trump had also stated that support for an immediate reduction in US borrowing costs would be a prerequisite for any candidate seeking consideration for the position.
The central bank defied Trump and delayed expected rate cuts as it continues to weigh the inflationary impact of the US-Israel war in Iran on the broader economy.
The Fed held its rate at between 3.5% and 3.75% in April, and economists now expect borrowing costs to remain at that level for the remainder of 2026, with some forecasting an increase.
Higher interest rates make borrowing more expensive for consumers, which helps cool inflation by slowing overall spending across the economy.
Trump hit back at critics of his appointments and said “no one in America is better prepared” to lead the bank, standing firmly behind his selection of Warsh.
He called on Warsh to let the economy “boom” during his tenure and said the central bank had “lost its way” under Powell’s leadership in recent years.
Trump said the Fed had become distracted by issues unrelated to its core purposes of stable prices, low inflation and full employment, including climate change and diversity, equity and inclusion.
Warsh, a former Wall Street banker, faces the challenge of navigating a deeply fractured economic landscape while demonstrating independence from White House influence to sceptical politicians and the public.
He vowed on Friday to lead a “reform-oriented” Federal Reserve, telling Trump he believed “these years can bring unmatched prosperity that will raise living standards for Americans from all walks of life.”