Incoming Federal Reserve chair Kevin Warsh will be sworn in at the White House on Friday, taking the reins of the US central bank as it faces unprecedented pressure from President Donald Trump to cut interest rates.
Warsh, whom Trump nominated for the role, has backed rate cuts in the past, even as the world’s largest economy faces inflation at a three-year high.
It is unusual for the chief of the Fed — an independent non-partisan body that sets monetary policy according to a dual mandate on inflation and employment — to be sworn in at the White House. The last central bank chief to do so was Alan Greenspan in 1987 under president Ronald Reagan.
Trump will host the ceremony on Friday, the White House told AFP.
Background and Controversy
Trump frequently criticized and insulted Warsh’s predecessor, Jerome Powell, even pursuing a criminal probe that the outgoing chair said was meant to pressure the Fed over monetary policy decision-making.
The White House has separately sought to fire Fed Governor Lisa Cook, a Biden administration appointee, over mortgage fraud allegations. That case is pending before the Supreme Court.
Warsh's Pledge
At his Senate confirmation hearing, Warsh insisted that he would “absolutely not” be a puppet for the president.
“Mr. Warsh insists that he will defend the Fed’s independence in monetary policy,” said David Wessel, senior fellow at the Brookings Institution. “I hope he is true to his word. The risks are higher than ever.”
The swearing-in ceremony at the White House underscores the close ties between the Trump administration and the new Fed chair, raising questions about the central bank's traditional independence.
