Kevin Warsh takes office as new Fed Chair... "Will lead a reform-oriented Fed" (2nd comprehensive report)

Kevin Warsh takes office as new Fed Chair... "Will lead a reform-oriented Fed" (2nd comprehensive report)

Emphasizes independence and reform in inaugural speech... Attempts to dispel concerns about Fed independence while being mindful of Trump's expectations

Trump, who urged interest rate cuts, ostensibly tells Warsh to "be independent"... Next month's FOMC meeting draws attention

Kevin Warsh, the new chairman of the U.S. Federal Reserve (Fed), took office on the 22nd (local time).

As he emphasized the Fed's independence and declared the need for reform in his inaugural speech, attention is focused on how he will respond to President Donald Trump's continued pressure for interest rate cuts.

After taking the oath of office at the White House, presided over by U.S. President Donald Trump, Chairman Warsh said, "The Fed's mission is to promote price stability and maximum employment. When these goals are pursued with wisdom, clarity, independence, and determination, inflation will be low and growth will be strong."

He continued, "(In this way) the United States can prosper further and its international standing will be further solidified," emphasizing, "To accomplish this mission, I will lead a reform-oriented Fed."

Chairman Warsh added, "I will learn from past successes and mistakes, break free from rigid frameworks and models, and maintain clear standards for integrity and performance."

It is interpreted that he simultaneously attempted to dispel concerns that the Fed might be swayed by President Trump's pressure to cut interest rates, by mentioning the importance of Fed independence, and declared his intention to respond to President Trump's demands for Fed reform.

At the oath ceremony, President Trump said, "No one in America is as well-prepared to lead the Fed as Warsh," and "I hope Chairman Warsh will be completely independent."

He also said, "Don't look at me. Don't look at anyone. Just do your job and do it well."

This is in contrast to his treatment of Warsh's predecessor, Jerome Powell, whom he pressed for interest rate cuts without hesitation, using insulting language.

As Chairman Warsh is just beginning his term, it is understood that Trump is refraining from overt pressure for now and will observe how much Warsh meets his expectations.

President Trump said that while Fed members would make their own judgments, they would listen to Chairman Warsh, and that the administration fully supported Chairman Warsh. This is interpreted as indirect pressure for decisions that align with the Trump administration's stance.

Chairman Warsh's term is four years, and he will preside over his first Federal Open Market Committee (FOMC) meeting, which determines the U.S. benchmark interest rate, on the 16th-17th of next month.

The market is paying attention to the impact of Chairman Warsh's appearance on the Fed's monetary policy. With the possibility of interest rate hikes being raised due to worsening inflation caused by the ongoing Iran war, the biggest concern is whether Chairman Warsh will make a decision that goes against President Trump's wishes.

During his Senate confirmation hearing, Chairman Warsh also emphasized the Fed's independence, stating that monetary policy would be decided based on the Fed's own judgment rather than the President's demands.

Chairman Warsh's oath of office was administered by Supreme Court Justice Clarence Thomas. The ceremony was attended by various cabinet members, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, as well as Kevin Hassett, White House National Economic Council Director, who competed with Warsh for the Fed chairmanship.

Condoleezza Rice, who served as Secretary of State during the George W. Bush administration, also attended, drawing attention. It is reported that their connection began when Warsh was a student at Stanford University, taking Rice's international politics course.

Former Chairman Powell, who clashed with President Trump for 8 years, remains a Fed governor. After returning to the White House last year, President Trump pressed former Chairman Powell for interest rate cuts without hesitation, using insulting language.