Kevin Warsh was sworn in Friday at the White House as the chair of the Board of Governors of the Federal Reserve.
Warsh, who now holds one of the world’s leading economic positions, is taking the position at a pivotal time for the U.S. economy as it teeters amid the conflict in the Middle East.
He is succeeding Jerome Powell, who faced a pressure campaign from President Donald Trump to lower interest rates. Powell will remain at the Fed as a governor.
At the swearing-in ceremony, Trump acknowledged several of the high-profile attendees, including Supreme Court Justices Clarence Thomas and Brett Kavanaugh, as well as House Speaker Mike Johnson. He also noted that there was “no one better” than Warsh to lead the Central Bank.
“Kevin has worked at the highest levels of the financial world as an executive in the private sector. We did very well, and he served at the highest reaches of government as a senior economic advisor in the White House,” Trump said.
The remarks come as speculation rises about how Warsh would conduct his job as Trump hand-picked him for the role. Trump’s ire with Powell began when he accused the former Fed chair of not lowering rates. He repeatedly said he wanted to fire Powell, but legal experts agree that a sitting Fed Chair can’t be removed without cause.
Trump joked that he would sue Warsh if he doesn’t lower borrowing costs, but on Friday he said he wants the new leader to be “totally independent.”
“Don’t look at me, don’t look at anybody, just do your own thing and do a great job,” he said.
In remarks after being sworn in by Justice Thomas, Warsh said he recognized that it is currently a “time of great consequence.”
“I’m not naive about the challenges we face, I believe, Mr. President, these years can bring unmatched prosperity that will raise living standards for Americans from all walks of life,” he said, adding, “To fulfill this mission, I will lead a reform-oriented Federal Reserve.”
Warsh hinted that changes were coming at the Fed, likely in line with Trump’s thinking. He said his goal is to create an environment where people can do their life’s best work."
“I’m going to look around and try to hold on to this special moment, but after we leave this stage, the real work begins,” he said.
Warsh will serve a four year term. His first meeting as chair is set for June 16-17.