Former Federal Reserve Chairman Alan Greenspan was sworn in at the White House in 1987, and every chairman since has held the ceremony at the Federal Reserve Building. The move highlighted the agency’s independence from the executive branch, which has grown more testy during the second Trump administration. On Friday, new Federal Reserve Chairman Kevin Warsh returned the ceremony to the East Room.
“I intend to fill the role of chairman with energy and purpose, just the way Chairman Greenspan did, faithful to the mission and the very best conditions of the Fed,” Warsh said after taking the oath of office. “As you demonstrate, Mr. President, every day, energy and purpose are how big obstacles are overcome.”
Every branch of government was represented in the audience, from former House Speaker Kevin McCarthy to Cabinet officials and Supreme Court Justices Brett Kavanaugh and Clarence Thomas.
His nomination also highlights the battles President Donald Trump has waged with the Federal Reserve.
“Thankfully, unlike some of his predecessors, Kevin understands that when the economy is booming, it is – that’s a good thing,” Trump said in his opening remarks. “We don’t have to go crazy, just let it boom.”
Warsh previewed that his chairmanship will be reform-oriented and will promote price stability and maximum employment.
“Today marks a return to an institution that I do, in fact, cherish,” Warsh said. He formerly served on the Fed board of governors during the George W. Bush administration, which was where he met then-staff secretary Brett Kavanaugh. “My goal now is to create an environment in which the best people can do their life’s best work, and to face every challenge in the spirit of common purpose and devotion to the national interest in a word to excellence.”
The open question is how Warsh will balance the priorities of the board with the desires of the president. Trump accused outgoing chair Jerome Powell of refusing to lower interest rates out of political opposition. The central bank has cut rates only three times since Trump took office again. Before that, the Reserve only reduced rates right before the 2024 presidential election, a move Trump claimed was intended to benefit then-Vice President Kamala Harris.
Warsh comes to the role with plenty of qualifications. President George W. Bush first nominated him to the board in 2005, at the time the youngest-ever member, and he passed the Senate Banking Committee unanimously and was approved by a voice vote. Warsh served on the board for five years, resigning early to join the private sector. He holds a massive $130 million investment portfolio, which he promised to put into a trust for the duration of his time on the Federal Reserve.
But during his confirmation hearing in April, questions centered not around his experience but whether he’d simply be a yes man for Trump.
“Having a sock puppet in charge of the Fed would also give the president access to the Fed’s powerful authorities to enrich himself, his family, and his Wall Street buddies,” Sen. Elizabeth Warren said at the time. Warsh repeatedly answered that Trump had never asked him to commit to a particular interest rate and that he was not a sock puppet.
Warsh repeatedly insisted during the confirmation hearing and his oath of office speech that the Fed has become out of touch and outdated and that he will press for reforms.
In a weaving speech in the East Room, Trump praised Warsh’s wide popularity, promoted the administration’s regulation-cutting spree, promised more chip manufacturing in the U.S., and reiterated that Iran must never have a nuclear weapon. He also drew comparisons between the front row of the audience and Warsh.
“Which is more important, being a justice of the Supreme Court or your job?” Trump asked to laughter from the audience. “I’m not sure. I think I’d rather be a justice, between you and I. It might be easier. You’re going to find out.”
Friday’s East Wing audience featured many groups the president has crossed wires with recently. On Thursday, Republican senators grilled acting Attorney General Todd Blanche about a new anti-weaponization fund to pay alleged victims of Justice Department weaponization. The Senate recessed without passing a reconciliation bill to fund immigration enforcement, which Trump had said he wanted on his desk by June 1. The Senate has has also not moved on the SAVE America Act or figured out a way to add security funding for the new White House ballroom. In recent months, Trump has also criticized conservative justices on the Supreme Court for striking down most of his tariffs. He was the first president to attend oral arguments in April when the court considered plaintiff arguments to block the Trump administration from overturning birthright citizenship.
“It would be a disgrace if the Supreme Court of the United States allows that to happen,” he told reporters in the Oval Office on Thursday. “Remember what I said, 20 to 25% of the people coming into our country will come in through birthright citizenship.”
But for now, he appears to be friendly with Kevin Warsh.
“I want them to be independent and just do a great job,” Trump told Warsh on Friday. “Don’t look at me, don’t look at anybody, just do your own thing and do a great job.”
Carolina Lumetta is White House correspondent for RealClearPolitics. Follow her on X @CarolinaLumetta.
