Warsh to be sworn in as Fed chair by Trump

The United States is set to witness a significant shift in its monetary policy leadership as Kevin Warsh prepares to take the helm of the Federal Reserve. President Donald Trump will preside over the swearing-in ceremony at the White House, marking the transition from Jerome Powell, who had been a target of Trump's criticism for not aggressively lowering interest rates.

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President of the United States Donald Trump will preside over the swearing-in ceremony of his nominee Kevin Warsh as the head of the Federal Reserve tomorrow, Friday, at the White House, an administration official confirmed to EFE on Thursday.

Warsh, a former Fed governor with extensive experience in finance and Wall Street, was confirmed by the Senate last week. His nomination signals Trump's desire for a more expansionary monetary policy. However, the economic landscape presents challenges. Inflation in the U.S. is nearing 4%, partly fueled by geopolitical tensions and disruptions, making immediate, aggressive interest rate cuts a complex proposition for the central bank.

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Warsh, 56, received the Senate's approval last week to replace Jerome Powell at the head of the Fed, which he joined in 2018, also during Trump's first term (2017-2021).

Despite Trump's clear preference for lower rates, Warsh has publicly committed to maintaining the Fed's independence and stated that the President has not pressured him to commit to specific rate cuts. This assertion is crucial for the Fed's credibility. Nonetheless, the market will be keenly watching Warsh's initial actions and statements for clues about his approach to balancing inflation concerns with the administration's growth objectives.

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However, since his return to power in January 2025, Trump has maintained a campaign of pressure against Powell, demanding an aggressive reduction in interest rates and even calling the economist a 'cretin,' whom he nicknamed 'tardy' for 'delaying' rate cuts to the detriment of the U.S. economy.

From a domestic perspective, this leadership change is viewed with a mix of anticipation and caution. Supporters of Trump's economic agenda see Warsh as a potential catalyst for growth, while others worry about the implications of a Fed perceived as being overly influenced by political pressure. The coming months will be critical in determining whether Warsh can navigate these competing demands and steer the U.S. economy effectively.

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By nominating Warsh in January to lead U.S. monetary policy, Trump has expressed confidence that he, a financier with extensive Wall Street experience, will implement a more expansive management and has said he would be disappointed if he does not cut rates immediately upon taking office.