Trump urges new Fed chair Warsh to act independently
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- Trump urged the incoming Fed chair Kevin Warsh to be "totally independent" and ignore outside opinions at the White House swearing‑in ceremony.
- Kevin Warsh, a former Wall Street banker, was sworn in as Fed chair in a White House ceremony—the first such ceremony since Alan Greenspan in 1987.
- Senator Elizabeth Warren and other critics warned that Warsh could become a "sock puppet" for Trump, questioning his independence.
- Federal Reserve has held its policy rate between 3.5% and 3.75% in April and is expected to keep it there through 2026, despite Trump's calls for immediate cuts.
- Trump criticized the Fed under Jerome Powell for being distracted by climate change and DEI issues, claiming it has "lost its way."
Why it matters: Investors and borrowers face market volatility as Trump's demand for swift rate cuts challenges the Fed's data‑driven stance, while critics warn a politicized chair erodes confidence.
