Stock market today: Dow, S&P 500, Nasdaq advance as tech stocks gain, investors monitor US-Iran talks
President Trump swore in Kevin Warsh as Fed chair on Friday afternoon, commencing Warsh’s four-year term as the leader of the US’s central bank.
The Senate already confirmed Warsh for a 14-year term as a governor. As Fed chair, Warsh will have to maneuver the central bank through tricky economic conditions as the war in Iran and subsequent oil price shock have rekindled inflation. The labor market has stabilized, making interest rate cuts less likely this year.
“I will lead a reform-oriented Federal Reserve, learning from past successes and mistakes, both escaping static frameworks and models, and upholding clear standards of integrity and performance,” Warsh said in a speech.
In the East Room of the White House, Trump said he hoped for an independent Federal Reserve. “Don’t look at me, don’t look at anybody, just do your own thing and do a great job,” Trump said, addressing Warsh.
The central bank has been mired in questions surrounding that issue as Trump repeatedly lambasted former Fed Chair Jerome Powell on social media and attempted to fire a Fed official. Those concerns reared up again this year when the Department of Justice launched a probe into the central bank and Powell, though it later withdrew the investigation.
Powell, whose term as chair ended on May 15, will remain on the board of governors. My colleagues detailed the fallout between Trump and Powell and the biggest moments of his tenure as chair here.
