Kevin Warsh Takes Office as Fed Chair... Citing "Independence" and "Reform-Oriented" (Comprehensive)

Kevin Warsh Takes Office as Fed Chair... Citing "Independence" and "Reform-Oriented" (Comprehensive)

Sworn in at the White House... Trump, who pressured Powell for rate cuts, tells Warsh to be "independent"

Kevin Warsh, the new chairman of the U.S. Federal Reserve (Fed), took office on the 22nd (local time).

After taking the oath of office at the White House, presided over by U.S. President Donald Trump, Chairman Warsh said, "The Fed's mission is to promote price stability and maximum employment. When these goals are pursued with wisdom, clarity, independence, and determination, inflation will be low and growth will be strong."

He continued, "In this way, the U.S. can prosper further and its international standing will be further solidified," emphasizing, "To accomplish this mission, I will lead a reform-oriented Fed."

Chairman Warsh added, "We will learn from past successes and mistakes, break away from rigid frameworks and models, and maintain clear standards for integrity and performance."

This is interpreted as an expression of his commitment not to be swayed by President Trump's pressure for interest rate cuts, while simultaneously stating his intention to respond to President Trump's demands for Fed reform, by citing the importance of the Fed's independence.

During the swearing-in ceremony, President Trump said, "I want Chairman Warsh to be completely independent," and "He will restore confidence in the Fed."

This is in stark contrast to how he did not hesitate to use insulting language against Warsh's predecessor, Jerome Powell, while pressuring him for interest rate cuts.

As Chairman Warsh is just beginning his term, this is read as an intention to observe how well he meets Trump's expectations.

President Trump said the administration fully supports Chairman Warsh. He also stated that the stock market is strong due to investors' preference for Chairman Warsh.

Chairman Warsh's term is 4 years, and he will preside over his first Federal Open Market Committee (FOMC) meeting, which decides the U.S. benchmark interest rate, on the 16th-17th of next month. The market is paying attention to the impact of Chairman Warsh's appearance on the Fed's monetary policy.

During his Senate confirmation hearing, Chairman Warsh emphasized the Fed's independence, stating that monetary policy would be decided based on the Fed's own judgment rather than the President's demands.

Former Chairman Powell, who clashed with President Trump for 8 years during his term, remains a Fed governor. President Trump did not hesitate to use insulting language and pressured former Chairman Powell for interest rate cuts.