Source: Jinshi Data
A White House official revealed that U.S. President Donald Trump will personally preside over the swearing-in ceremony for incoming Federal Reserve Chairman Kevin Warsh at the White House on Friday. Warsh will become the 17th chairman of the Federal Reserve, succeeding Jerome Powell, and also the wealthiest Fed chairman in history.
This ceremony at the White House highlights Trump's high level of personal attention to this appointment. In contrast, when Trump nominated Powell to lead the Fed during his first term in 2018, Powell was sworn in at the Federal Reserve itself, and Trump did not attend.
The last newly appointed Fed chairman to be sworn in at the White House was Alan Greenspan in 1987. In recent years, the swearing-in ceremonies for Fed chairs have been held internally at the Federal Reserve.
The last president to attend such a ceremony was George W. Bush, who participated in Ben Bernanke's swearing-in in 2006, when Bernanke was formerly the chairman of the White House Council of Economic Advisers. Later that same year, Warsh was sworn in as a Federal Reserve governor by then-Vice President Dick Cheney at the Eisenhower Executive Office Building.
Friday's ceremony will mark the end of an unusually long transition period for the Federal Reserve's leadership. The Fed stated last week that Powell would remain acting chairman until Warsh, whose four-year term was confirmed by the Senate last week, completed the swearing-in.
Powell's four-year term as Fed chairman expired last weekend. Powell has indicated that he plans to continue serving on the Federal Reserve Board of Governors for some time, but did not specify the duration. His term as a governor lasts until January 2028.
A delay of several days between confirmation and swearing-in is not uncommon. Warsh had previously agreed to divest certain personal investments before taking office.
Warsh will take the helm of the Fed at a complex juncture. The U.S.-Israel war against Iran has exacerbated inflationary pressures, complicating the Fed's policy outlook, while Warsh's critics worry about whether he can remain sufficiently independent from the White House.
Trump has stated that he expects Walsh to cut interest rates in the near term. During his Senate confirmation hearing, Warsh pledged to act independently but also harshly criticized the central bank's performance in recent years.
As the transition continues, Federal Reserve Vice Chair Philip Jefferson will represent the central bank at the G7 finance ministers and central bank governors meeting in Paris on Monday.
