The new head of the Federal Reserve takes office: “I want him to be totally independent,” says Trump

“I want Kevin to be totally independent. I want him to be independent and just do a great job. Don’t look at me or anyone else, do your thing and do a great job,” declared the president, who in the past pressured the previous Fed chair, Jerome Powell, to lower interest rates.

Warsh was confirmed by the Senate last week, bringing new leadership to the most powerful central bank in the world at a delicate moment for the global economy.

In addition, Warsh, 56, a former top Federal Reserve official, assumes the presidency at a moment unusually difficult for the independent body.

inflation has exceeded the 2% target of the Federal Reserve for five years and now it is increasing faster due to rising fuel prices.

The committee that sets interest rates is divided and last month it recorded the largest number of dissenting votes in more than three decades. And Powell, after years of personal attacks by the Republican president and an unprecedented legal investigation of the Department of Justice, plans to remain on the institution’s board even after his term as president ends, which could create a competing power center.

The Federal Reserve has faced numerous threats to its independence from Trump, who has repeatedly attacked Powell for not cutting interest rates. Trump also tried to dismiss the governor of the Federal Reserve, Lisa Cookand launched an investigation into Powell’s brief testimony before the Senate related to a building renovation.

Kevin Hassett, director of the White House National Economic Council, stated in an interview with Fox News days ago that he believes markets are relieved that Warsh “will help lower interest rates over time.”

“Obviously, guided by the data,” Hassett said. “I’m not putting any pressure on Kevin Warsh.”