President Donald Trump told newly sworn-in Federal Reserve Chair Kevin Warsh to be totally independent during a White House ceremony on Friday [1, 4].

The appointment marks a critical transition for the U.S. central bank, as the relationship between the executive branch and the Federal Reserve often influences market stability and inflation control.

During the event in Washington, D.C., Trump said that Warsh should operate without interference from the presidency [1, 4]. The president said that he wants the new chair to be independent and told him, "He will do his own thing" [2, 3].

Trump further distanced himself from the central bank's future decision-making process. "Don't look at me," Trump said [5].

According to the president, maintaining an independent Federal Reserve is essential for the institution's credibility with the public, and global financial markets [2, 3]. This stance follows a period of historical tension between the White House and the Fed regarding interest rate policies.

Warsh took the oath of office during the ceremony, officially assuming leadership of the nation's monetary policy. The event was attended by administration officials and documented by several news outlets as the start of Warsh's tenure [1, 4].

Trump's public encouragement of autonomy suggests a desire to avoid the perception of political pressure on the Fed's interest rate decisions. By stating, "I want him to be independent," the president said he aimed to signal a hands-off approach to the central bank's operations [3].

“"He will do his own thing."”

The Federal Reserve's independence is a cornerstone of U.S. economic policy, designed to prevent short-term political goals from compromising long-term price stability. By publicly urging Kevin Warsh to remain autonomous, the administration is attempting to reassure investors and international markets that monetary policy will be driven by economic data rather than political mandates.