Trump wants new Fed chair to be 'totally independent'

May 22, 2026

President Donald Trump swore in Kevin Warsh as the new Federal Reserve Chairman at a White House ceremony, publicly urging him to maintain complete independence from political influence despite Trump's history of pressuring the previous chair, Jerome Powell, to cut interest rates. The ceremony's White House location, unprecedented since 1987, highlighted Trump's personal stake in this appointment while also drawing criticism from Democrats like Elizabeth Warren who feared Warsh would merely serve the president's wishes. Trump criticized Powell's leadership for allegedly straying into issues like climate change and diversity rather than focusing solely on core economic mandates.

Who is affected

Kevin Warsh (new Federal Reserve Chairman)
Jerome Powell (outgoing Federal Reserve Chairman)
Donald Trump (US President)
Senator Elizabeth Warren and other Democratic critics
Everyday consumers affected by interest rate decisions
The American public broadly
The Federal Reserve as an institution
Wall Street and financial markets

What action is being taken

The Federal Reserve is holding interest rates at between 3.5% and 3.75%
The Federal Reserve is weighing the impact of the US-Israel war in Iran on inflation
Kevin Warsh is being sworn in as Federal Reserve Chairman

Why it matters

This appointment matters because the Federal Reserve Chairman controls monetary policy that directly affects borrowing costs, inflation, and economic growth for all Americans. The situation is particularly significant because it raises fundamental questions about the independence of the Federal Reserve from political pressure, especially given Trump's history of publicly demanding rate cuts and his requirement that candidates support immediate rate reductions. The tension between presidential preferences and central bank independence could have far-reaching consequences for economic stability, institutional credibility, and public trust in monetary policy decisions.

What's next

No explicit next steps stated in the article

Read full article from source: BBC