Kevin Warsh sworn in as the new Fed chairman
A swearing-in ceremony was held at the White House for the new chairman of the U.S. Federal Reserve (Fed), Kevin Warsh. With the ceremony led by Supreme Court Justice Clarence Thomas and attended by Judge Brett Kavanaugh, Warsh officially began his 4-year term. Warsh, the first Fed chairman to be sworn in at the White House since Alan Greenspan in 1987, stated after the ceremony, “I will lead a reform-focused Fed that learns from past successes and mistakes, moves away from static frameworks and models, and upholds standards of integrity and performance.”
Warsh, who also served as a Fed Governor from 2006 to 2011, expressed his satisfaction at returning to the institution. Warsh is expected to preside over his first monetary policy meeting on June 16-17.
TRUMP EMPHASIZES INDEPENDENCE
Speaking at the ceremony, U.S. President Donald Trump addressed discussions regarding the independence of the central bank. Addressing Warsh, Trump said, “Don’t look at me or anyone else. Just do your job and do a great job.” Trump argued that the Fed has strayed from its main mission in recent years, claiming that its focus was distracted by climate policies and diversity and inclusion initiatives implemented during the previous administration.
POWELL TO REMAIN ON THE BOARD
Warsh, the 11th Fed chairman of the modern era at 56 years old, took over from Jerome Powell, who held the position for 8 years. It was reported that Powell, previously criticized by Trump for not lowering interest rates at the desired pace, will continue to serve as a 'governor' on the Fed Board, marking a first in nearly 80 years.
