Kevin Warsh was sworn in as Chairman of the Federal Reserve Board on 23 May at the White House East Room, with President Donald Trump presiding over the ceremony and declaring that Warsh would restore confidence in the US central bank. The swearing-in marks a significant leadership transition at the Fed, with Warsh pledging to steer the institution toward what he described as a 'reform-oriented' direction.

The Ceremony and Key Attendees

Warsh took the oath of office administered by Supreme Court Justice Clarence Thomas, before a gathering that included House Speaker Mike Johnson, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and former Secretary of State Condoleezza Rice. The high-profile audience underscored the political weight attached to the appointment.

Trump called Warsh 'one of the truly great chairmen of the Federal Reserve that we've ever had,' adding, 'He's respected by everybody, and that's so important in that position.'

Trump's Call for Independence — and His Criticism of the Fed

In a notable moment, Trump publicly urged Warsh to operate without political influence — including his own. 'I want Kevin to be totally independent,' Trump said. 'Don't look at me, don't look at anybody, just do your own thing and do a great job.'

The statement came even as Trump criticised the Fed's recent trajectory, arguing the institution had become distracted by 'climate policy and Diversity, Equity, and Inclusion (DEI) initiatives' rather than concentrating on its core mandates of inflation control and employment. Trump also said Warsh would bring 'much needed reform and modernisation' in areas including data collection, economic modelling, and the Fed's communication practices.

Warsh's Priorities: Price Stability and Reform

Warsh, who previously served as a Federal Reserve Governor during the 2008 financial crisis, outlined his agenda in clear terms. 'Our mandate at the Fed is to promote price stability and maximum employment,' he said. 'When we pursue those aims with wisdom and clarity, independence and resolve, inflation can be lower, growth stronger, real take-home pay higher, and America can be more prosperous.'

He committed to leading a 'reform-oriented Federal Reserve learning from past successes and mistakes.' Warsh is known to have studied under economist Milton Friedman and was mentored by former Treasury and State Secretary George Shultz — intellectual lineages that signal a monetarist-leaning, institutionally disciplined approach.

Trump's Economic Claims at the Event

Trump used the occasion to promote his administration's economic record, citing a 600-point stock market rise during Thursday's trading session. He also claimed the US had attracted '$18 trillion being invested in the US' during the first 11 months of his administration, crediting tariffs and deregulation for spurring manufacturing and technology investment. 'We're building factories, car plants, everything, AI, everything all over the country,' Trump said.

With Warsh now at the helm, the Federal Reserve enters a period of closely watched transition — one where the balance between institutional independence and political expectation will be tested from day one.