Kevin Warsh Sworn in as New Fed Chair, Emphasizes Independence and Reform

 
Kevin Warsh was officially sworn in as the new chair of the U.S. Federal Reserve on May 22. Following his inauguration, he emphasized the importance of the Fed's independence and the need for reform, drawing attention to how he will navigate monetary policy amid pressure from President Donald Trump for interest rate cuts.
 
According to Yonhap News, during the swearing-in ceremony held at the White House, Warsh stated, "The mission of the Fed is to promote price stability and maximum employment." He added, "When we pursue these goals with wisdom, clarity, independence, and determination, inflation will decrease and growth will strengthen."
 
Warsh expressed his intention to lead a reform-oriented Fed to further enhance America's prosperity and international standing, stating, "I will learn from past successes and failures and break free from rigid frameworks and models." While he underscored the importance of the Fed's independence, his comments also suggested a willingness to align with the reform agenda sought by President Trump.
 
During the ceremony, President Trump remarked, "There is no one better prepared to lead the Fed than Warsh," and expressed his hope that Warsh would work completely independently. He added, "Do not look at me or be conscious of anyone else. Just do what needs to be done."
 
Warsh's term will last four years, and he will preside over his first Federal Open Market Committee (FOMC) meeting next month. Market observers are keenly interested in how Warsh will approach interest rate policy amid rising inflation concerns due to instability in the Middle East and the prolonged conflict in Iran. Meanwhile, Jerome Powell, the former chair who frequently clashed with President Trump during his tenure, has stepped down from the chair position but remains on the Fed's board.