‘Be Totally Independent’: Trump Swears in His Fed Chair Pick

President Donald Trump swore in his pick to chair the Federal Reserve, Kevin Warsh, on Friday, saying he wants him to be independent in the role.

“I want Kevin to be totally independent,” Trump said. “I want him to be independent and just do a great job. Don’t look at me, don’t look at anybody, just do your own thing and do a great job.”

Trump said Warsh will restore respect to the Fed. Trump repeatedly criticized Warsh’s successor, Jerome Powell, for failing to cut interest rates. While Trump has called for interest rate cuts for years, some investors say they expect a rate increase as the Fed’s next move amid rising inflation, according to the Wall Street Journal.

The Justice Department also investigated Powell for spending over budget on the renovations of the Fed building and allegedly lying to Congress about the matter, but it dropped the investigation in April.

“Unfortunately, in the eyes of many, the Fed lost its way in recent years,” Trump said. “It became distracted by concerns far removed from its core mission and mandate, drifting into matters such as climate policy and DEI initiatives, with the Fed straying from its mandate, while the last administration blew out the deficit.”

Trump said Warsh will bring “much needed reform” and will modernize data collection methods, roll back reliance on inaccurate models, and end the Fed’s practice of issuing “forward guidance.”

“Kevin will restore confidence in the Fed, which is so important, and among Americans all across the political spectrum, and people from all over the world, and they’re going to be looking to Kevin, probably, and possibly more than any other person that’s had your esteemed position before,” Trump said, adding that he will “safeguard the Fed’s integrity.”

“They’ll make their own decisions and hopefully make them well, but they’ll be listening to Kevin all the way,” Trump said of the Fed’s Board of Governors. “I really believe that even if they’re from a somewhat different persuasion, they’re going to be listening to him out of respect, because everybody respects him.”

Warsh thanked the president for the honor of being sworn in at the White House. He said he will lead a “reform oriented Federal Reserve.”

“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, and no less important,” Warsh said, “America’s place in the world more secure.”

Warsh is the Shepard family distinguished visiting fellow in economics at the Hoover Institution and a lecturer at the Stanford Graduate School of Business. He is also a partner of Stanley Druckenmiller at Duquesne Family Office LLC.

Following the 2008 financial crisis, Warsh was skeptical of cutting rates. At the November 2010 Federal Open Market Committee meeting, Warsh expressed concerns about the Fed’s plan to stimulate the economy by lowering long-term interest rates through additional asset purchases.

But more recently, Warsh has criticized Powell for being too hesitant to lower interest rates. He told Fox Business’ “Kudlow” program in July that he had “some sympathy” for Trump being frustrated with how Powell is handling interest rates.