President Donald Trump reportedly said Friday that he wants newly installed Federal Reserve Chair Kevin Warsh to operate with full independence, a notable message after years of Trump publicly pressuring former Fed Chair Jerome Powell to slash interest rates.
The remarks came during a formal swearing-in ceremony led by Supreme Court Justice Clarence Thomas before a Republican audience that included former Vice President Dan Quayle, former Secretary of State Condoleezza Rice, and former House Speaker Kevin McCarthy.
Trump praised Warsh as a steady and capable leader who understands the importance of the institution he is now leading during a period of economic uncertainty and continued concern over inflation.
“I know that Kevin has the deepest respect and reverence for the institution he will lead starting today. We’re so lucky to have him,” Trump said.
The president then emphasized that he wanted Warsh to make decisions free from outside pressure — including from the White House itself.
“Honestly, I really mean this. This is not said in any other way: 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, okay?” the president added.
The comments stood in contrast to Trump’s often combative relationship with Powell, whom he repeatedly criticized during his tenure for refusing to lower interest rates as aggressively as the president wanted. Trump frequently blamed Powell for slowing economic momentum and publicly attacked the Fed’s decisions while inflation and borrowing costs became central political issues.
During Friday’s remarks, Trump again took aim at the Federal Reserve under Powell’s leadership, arguing the institution drifted away from its core mission.
“Unfortunately, in the eyes of many, the Fed lost its way in recent years and became distracted by concerns far removed from its core mission and mandate,” Trump said.
The president criticized the Fed’s involvement in issues such as climate policy and diversity, equity, and inclusion initiatives, while also blaming the previous administration’s spending policies for worsening inflation.
“Americans suffered the worst inflation that we had in history,” Trump said. “Some people say, ‘You are wrong about that, it’s only in 48 years.’ But I think 48 years almost sounds worse.”
Trump praised Warsh for emphasizing what he described as the Federal Reserve’s two essential responsibilities: maintaining price stability and supporting full employment.
The transition comes after months of tension surrounding Powell’s leadership. In April, Trump’s Department of Justice announced it was ending a criminal investigation into Powell tied to allegations involving cost overruns on the multibillion-dollar renovation of the Federal Reserve’s Washington headquarters.
Powell had previously stated that although his term as Fed chair expired on May 15, he intended to remain on the Federal Reserve Board of Governors “for a period of time to be determined.”
The leadership change arrives at a critical time for the economy as Americans continue grappling with elevated prices, high borrowing costs, and uncertainty tied to global instability. Ongoing international tensions and conflicts abroad have added further strain to markets and energy prices, increasing pressure on the Federal Reserve to maintain stability while avoiding deeper economic disruption.
For many conservatives, the moment represents an opportunity for the Fed to refocus on traditional economic priorities rather than broader political or social debates. At the same time, the pressure facing the central bank reflects how quickly economic turbulence — whether fueled by government spending, inflation, or instability overseas — can affect households across the country.
