Trump tells Warsh to be 'totally independent' as Fed chair: 'Don't look at me'
At the White House swearing-in ceremony, President Trump told new Fed Chair Kevin Warsh to be 'totally independent — don't look at me.' The statement contrasts with Trump's months of public criticism of former Chair Powell. Markets reacted cautiously; the 10-year Treasury yield eased to 4.42 percent.
At a White House Roosevelt Room ceremony, President Donald Trump addressed Kevin Warsh: 'Be totally independent on monetary policy, Kevin. Don't look at me.' The event was attended by Treasury Secretary Scott Bessent and White House National Economic Council Director Kevin Hassett. Trump's remarks stand in sharp contrast with six months of public criticism of former Fed Chair Jerome Powell.
Warsh said in his remarks that his 'commitment to the inflation target is uncompromising; I will act on data and with transparency.' He added he would remain 'open-minded' for the Federal Open Market Committee June meeting. Warsh's hawkish stance during his 2007–2011 Fed board tenure is remembered; in Senate confirmation testimony, however, he spoke of a 'gradual and measured' approach in the current high-inflation environment.
Financial markets reacted cautiously. The 10-year Treasury yield eased to 4.42 percent intraday; the dollar index dropped 0.3 percent. Allianz Chief Economic Adviser Mohamed El-Erian wrote on X that 'the independence declaration is constructive, but the real test will be at the June meeting; how Warsh responds to any Trump rate-cut calls will be decisive.' Senator Elizabeth Warren called the statement 'disingenuous' and demanded Fed oversight reports be brought before Congress.
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