Kevin Warsh has been officially sworn in as chair of the US Federal Reserve, inheriting the delicate task of steering the world's largest economy just as the Trump administration finds itself under a magnifying glass over Americans' financial wellbeing.
Handpicked by Donald Trump, Warsh now leads the central bank while the president pressures it to cut interest rates - even as prices keep climbing like an overambitious squirrel. The economic outlook is further clouded by the US-Israel war on Iran, adding a layer of geopolitical uncertainty to the mix.
Warsh, a former Fed governor and Wall Street banker, succeeds Jerome Powell, who repeatedly warned about the inflationary risks of Trump's agenda and refused to slash rates - earning him the president's ire. (Powell was also handpicked by Trump once, in a delightful twist of fate.)
"I expect he will go down as one of the truly great chairmen of the Federal Reserve that we've ever had," Trump declared at a White House ceremony on Friday, claiming "no one in America is better prepared" for the role. Warsh took the oath administered by Supreme Court Justice Clarence Thomas, whom he called "an esteemed friend," as his wife Jane Lauder held a Bible.
The new Fed chair pledged to lead a "reform-oriented Federal Reserve," adding: "Inflation can be lower, growth stronger, real take-home pay higher, and America can be more prosperous."
But outside the White House, Americans are feeling the pinch. With Memorial Day weekend approaching and fuel prices at their highest in years, 68% of Americans believe Trump is prioritizing his controversial immigration crackdown over their economic wellbeing, according to a new Morris Predictive Insights poll. The nationwide average gas price hit $4.55 a gallon on Friday - up $1.35 from a year ago - and inflation reached a three-year high of 3.8% in April.
Trump has been waging an unprecedented battle to exert control over the Fed, raising fears about its independence. "I want Kevin to be totally independent," he claimed on Friday, before immediately undermining that sentiment by saying the Fed "lost its way in recent years."
At an April Senate hearing, Warsh said he'd maintain Fed independence, but his refusal to answer whether Trump lost the 2020 election raised Democratic eyebrows. Senator Elizabeth Warren called him "Donald Trump's sock puppet" and worried he'd prioritize presidential politics over family finances.
Inside the East Room, Warsh received a standing ovation from attendees including Justice Brett Kavanaugh, former Vice President Dan Quayle, ex-Secretary of State Condoleezza Rice, Treasury Secretary Scott Bessent, and National Economic Council Director Kevin Hassett. Warsh said: "While I'm not naive about the challenges we face, these years can bring unmatched prosperity."
But polls suggest Americans aren't buying it. A Gallup survey showed confidence at a four-year low, with 49% rating the economy as poor. Even among Trump voters, 36% believe his administration has the wrong priorities, and 16% of his 2024 voters no longer plan to vote Republican in the midterms - mainly due to the faltering economy and rising costs.
On his signature issues, disapproval ratings now sit at -35% for the economy and -13% for immigration. A majority of voters favor redirecting immigration enforcement spending to reduce food and health costs, and 56% say mass deportations are damaging the economy by raising costs for everyone.