With Trump Watching, Warsh Becomes Fed Chair

President Trump on Friday oversaw the White House swearing-in of the new Federal Reserve chair and said he would like Kevin Warsh's help in stimulating the economy even as he stressed that the nation's central bank would remain independent. Trump spent months criticizing Warsh's predecessor, Jerome Powell, for being reluctant to cut interest rates, with the Republican president arguing that lower borrowing costs would provide an economic boost. By taking the unusual step of holding the ceremony in the East Room and not the Fed, the AP reports, Trump made clear his satisfaction with Warsh, who was confirmed by the Senate last week, now being in charge.

The war with Iran has caused gas prices to spike, unsettled financial markets and driven inflation concerns across the economy. Those developments have led to recent doubts about whether Warsh will heed Trump's calls and push the Fed to lower rates. Still, Trump said he had faith that Warsh would prioritize a strong economy. "Thankfully, unlike some of his predecessors, Kevin understands that when the economy is booming, it is, that's a good thing," the president said. Trump said it was not necessary "to go crazy. Just let it go. We want it to boom." In his remarks Friday, Warsh promised "to lead a reform-oriented Federal Reserve, learning from past successes and mistakes, both escaping static frameworks and models and upholding clear standards of integrity and performance."

Republican President Ronald Reagan swore in Alan Greenspan as Fed chair at the White House in 1987. Republican President George W. Bush attended the 2006 ceremony at central bank headquarters when Ben Bernanke became chair. Having the event at the White House raises more questions about the Fed's independence as Trump seeks to bend the independent central bank to his will, per the AP. Trump addressed the issue during his remarks, saying: "Honestly, I really mean this. This is not said in any other way: I want Kevin to be totally independent." Then he criticized the Fed's record "in recent years."