US Fed Chair Promises ‘Reform-Oriented’ Tenure At White House Swearing-In

New United States Federal Reserve Chair Kevin Warsh has pledged to lead a “reform-oriented” central bank after being sworn in at the White House.

Warsh said he would focus on learning from past successes and mistakes while maintaining integrity, independence, and strong performance standards.

According to him, inflation can be reduced, economic growth strengthened, and take-home pay improved if the Federal Reserve pursues its goals with wisdom, clarity, and resolve.

President Donald Trump, who has repeatedly pressured the Federal Reserve to reduce interest rates, said Warsh would remain “totally independent” while also encouraging economic growth.

Trump stated that controlling inflation is important but should not come at the expense of economic expansion.

Warsh has previously supported interest rate cuts even as inflation in the United States remains high.

Supreme Court Justice Clarence Thomas administered the oath of office during the ceremony attended by several top officials, including Justice Brett Kavanaugh.

Warsh takes over leadership of the Federal Reserve at a time when the US economy faces high inflation and signs of weakness in the labour market.

Consumer inflation in April stood at 3.8 per cent, while unemployment has remained around 4.3 per cent.

The Federal Reserve’s main responsibilities include controlling inflation and maintaining maximum employment, a balance that economists say could become increasingly difficult.

Some policymakers have indicated that further interest rate increases may be necessary if inflation remains above target levels.

Warsh, however, believes technological innovation, especially advances driven by artificial intelligence, could help the economy grow without significantly increasing inflation.

Analysts say Warsh may face pressure from both the White House and financial markets as he attempts to balance economic growth with inflation control.

Jerome Powell, the former Fed chair, is expected to remain on the Federal Reserve board, a move seen as unusual but not unprecedented.

White House economic adviser Kevin Hassett expressed hope that Powell would eventually step aside completely to allow Warsh full control of the Federal Reserve.