Economy News

Warsh sworn in as Fed chair at the White House, not at the Fed, as Trump presses for cuts

Kevin Warsh was sworn in as chair of the US Federal Reserve on Friday 22 May in the White House East Room, with Supreme Court Justice Clarence Thomas administering the oath. NewsNation notes that the ceremony is customarily held at the Fed; AP recalls that Ronald Reagan swore in Alan Greenspan at the White House in 1987. Warsh, a former Fed governor, replaces Jerome Powell, whose term as chair ended the previous week; Powell has stayed on the board for now.

Warsh inherits a Fed that, dpa notes, cut rates three times in 2025 by 25 basis points each, then paused at its first three meetings of 2026 as inflation linked to the Iran war rose. He promised a “reform oriented Federal Reserve” and argued that AI-driven productivity gains could let the economy grow faster without higher inflation, allowing lower borrowing costs, AP reports. Stocks rose on the day, which Trump read as a sign of approval.

“I want Kevin to be totally independent.” — Donald Trump, via AP

How each outlet framed it

• AP — a swearing-in after Trump's bid for greater control over the independent bank, and Trump's claim that the Fed “has lost its way in recent years”.
• NewsNation — a break with tradition that raises concerns about political pressure, with the Fed reportedly divided over whether to raise or lower rates.
• dpa — rate decisions rest with the committee, not the chair alone, and critics warn that cutting too aggressively could fuel inflation. Trump told Warsh: “Don't look at me, don't look at anybody, just do your own thing and do a great job.”

What we don't know yet: whether Warsh can build a majority for cuts. His first meeting as chair is due in mid-June.