Warsh Promises ‘Reform-Oriented’ Fed as He Takes Over Leadership Amid Inflation Pressure

Kevin Warsh, promising to lead a “reform-oriented Federal Reserve,” was sworn in as chairman on Friday. Mr. Warsh spoke publicly for the first time since the Senate confirmed him earlier this month. “I recognize, as the president said, that this is a time of great consequence,” Mr. Warsh said after taking the oath. He added that he believes “these years can bring unmatched prosperity that will raise living standards for Americans from all walks of life.”Justice Clarence Thomas swore in Mr. Warsh at a ceremony hosted by President Trump in the East Room of the White House. Along with Justice Thomas, whom Mr. Warsh called a friend, Justice Brett Kavanaugh attended the ceremony. Mr. Warsh noted that he and Justice Kavanaugh both worked together as young staffers at the White House.Mr. Warsh takes over leadership of the central bank as it confronts economic pressure. Mr. Trump repeatedly berated former chairman Jerome Powell for not lowering interest rates as quickly as he wanted. Mr. Warsh — before his nomination — had also criticized the Fed for not lowering rates.During his confirmation hearing, Senate Democrats cast doubts on Mr. Warsh’s independence as chairman. Senator Elizabeth Warren referred to him as the president’s “sock puppet.”Mr. Trump seemed to respond to those criticisms Friday. “I want Kevin to be totally independent. I want him to be independent and just do a great job,” he said at the start of the ceremony. “Don’t look at me, don’t look at anybody, just do your own thing and do a great job,” he added.Mr. Warsh did not hint at what his plans are for his first policy meeting next month. But there are growing questions about whether the next move by the Fed will be to raise rates to counter inflation threats.During a guest lecture at Frankfurt on Friday, a Federal Reserve governor, Christopher Waller, said he was concerned about higher energy prices due to the war with Iran having a lasting effect on inflation.“I would support removing the ‘easing bias’ language in our policy statement to make it clear that a rate cut is no more likely in the future than a rate increase,” Mr. Waller said. He added that he would need to see improvement on inflation or a significant deterioration in the labor market before considering support for a rate cut.The minutes of the April Open Market Committee voted to leave the benchmark federal funds rate in a range of 3.5 percent to 3.75 percent. Minutes of the meeting released this week showed a majority of the committee members thought it was likely they would need to consider rate increases in the months ahead.

Warsh Promises ‘Reform-Oriented’ Fed as He Takes Over Leadership Amid Inflation Pressure

Warsh Promises ‘Reform-Oriented’ Fed as He Takes Over Leadership Amid Inflation Pressure

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