President Donald Trump used the swearing-in of new Federal Reserve Chairman Kevin Warsh to outline an aggressive vision for rapid economic expansion, lower inflation, and a decisive break from the politicized central banking of recent years.
According to The Gateway Pundit, Trump spoke for nearly 23 minutes in the White House ceremony before Warsh took the oath of office from Supreme Court Justice Clarence Thomas, using the moment not only to praise his nominee but to sharply criticize the direction of the Fed under former Chairman Jerome Powell and the Biden administration. The president framed Warshs appointment as a turning point away from climate activism and diversity mandates at the central bank and back toward its traditional, limited mission of sound money and full employment, a shift conservatives have long demanded.
Trump made clear that, unlike Democrats who routinely lean on institutions to advance ideological goals, he expects Warsh to operate free of political interference, even from the Oval Office. I want Kevin to be totally independent. I want him to be independent and just do a great job. Dont look at me, dont look at anybody, just do your own thing and do a great job, he told Warsh and the assembled guests, underscoring that a credible central bank must not be seen as a political arm of the White House.
He stressed that Warshs independence would be matched by his influence inside the institution, predicting that even those who disagree with him ideologically would defer to his judgment. I fully expect that with the greatest Fed chairs before him, Kevin will safeguard the Feds integrity. Theyll make their own decisions and hopefully make them well, but theyll be listening to Kevin all the way. I really believe that, even if theyre from a somewhat different persuasion, theyre going to be listening to him out of respect, because everybody respects him, Trump said, casting Warsh as a unifying figure in a deeply divided policy environment.
The president contrasted that respect with what he described as a serious decline in the Feds standing under Powell, whom he faulted for allowing progressive politics to seep into monetary policy. Unfortunately, Trump said, under Jerome Powell, the Fed has lost its respect and integrity, distracted by concerns far removed from its core mission and mandate, drifting into matters such as climate policy and DEI initiatives. For conservatives who have watched the central bank embrace left-iwing priorities, Trumps rebuke echoed long-istanding concerns that the Fed has been weaponized for ideological ends.
Trump tied that mission drift directly to the economic pain felt by ordinary Americans during the Biden years, arguing that a politicized Fed and a spendthrift administration combined to produce a historic cost?of?living crisis. With the Fed straying from its mandate, while the last administration blew out the deficit, Americans suffered the worst inflation that we had in history, he continued, linking runaway federal spending and regulatory overreach to the erosion of middle-iclass purchasing power.
In Trumps telling, Warsh represents a return to fundamentals: a central banker focused on price stability, low inflation, and robust employment rather than social engineering. Warsh, he said, will restore confidence in the Fed, which is so important, and among Americans all across the political spectrum, and people from all over the world, and theyre going to be looking to Kevin, probably, and possibly more than any other person thats had your esteemed position before, a statement that underscored how much credibility Trump believes has been squandered in recent years.
Trump also drew a sharp policy contrast between Warsh and Powell on the basic question of whether prosperity is something to be feared or encouraged. Thankfully, unlike some of his predecessors, Trump said in reference to Jerome Powell, Kevin understands that when the economy is booming, it is thats a good thing. He then drove home a core conservative economic principle: We want it to boom, we want it to be like nobody has ever had before, because we do have some debt wed like to take care of, and the way you do that is through growth.
The president rejected the technocratic assumption that strong growth must automatically trigger higher inflation and heavy-ihanded intervention from Washington. But economic growth does not mean inflation. You dont have to stop the world because youre doing well. Kevins also said that hell bring much-needed reform and modernization, transforming obsolete data collection methods, rolling back reliance on inaccurate models, and curtailing the Feds practice of issuing so-called forward guidance, Trump said, signaling a break from the opaque, model-idriven culture that has dominated central banking for decades.
Trump used the moment to highlight the markets apparent endorsement of his choice, pointing to record-breaking gains on Wall Street as Warsh prepared to take the helm. He noted that the Dow Jones Industrial Average had surged past 50,700 and that the S&P 500 had logged its eighth straight week of gains, telling Warsh, They both set new records today, and boy, thats something good, but youre going to bring it to a much different level, believe me, a remark that blended celebration with a challenge for even stronger performance.
The president tempered that celebration with a reminder that, in his view, the American economy still has untapped potential if Washington gets out of the way and the Fed sticks to its lane. Its good, but it can go much better, and thats what I think youre going to do, he added, suggesting that a disciplined monetary policy, coupled with pro-igrowth fiscal and regulatory reforms, could push the country into a new era of prosperity.
In the formal transcript of his remarks, Trump opened by emphasizing Warshs character and reverence for the institution he is about to lead. I know that Kevin has the deepest respect and reverence for the institution he will lead starting today. We are so lucky to have him. The Federal Reserve is a pillar of the world financial system and the most important central bank anywhere in the world, with a history stretching back more than 100 years. It is truly the institution thats most looked to and most respected, and its now taken on a new, a new, and even higher respect, in my opinion, he said, framing the Fed as indispensable but in need of course correction.
Trump then returned to the theme of independence, insisting that his call for Warsh to be totally independent was not mere rhetoric. And honestly, I really mean this. This is not said in any other way. I want Kevin to be totally independent. I want him to be independent and just do a great job. Dont look at me, dont look at anybody, just do your own thing and do a great job. Okay? he told the audience, implicitly contrasting his approach with Democrats who routinely pressure institutions to advance partisan goals.
He did not shy away from a blunt assessment of the Feds recent record, arguing that it had lost its way by prioritizing progressive causes over its statutory responsibilities. Unfortunately, in the eyes of many, the Fed lost its way in recent years. It became distracted by concerns far removed from its core mission and mandate, drifting into matters such as climate policy and DEI initiatives. With the Fed straying from its mandate, while the last administration blew out the deficit, Americans suffered the worst inflation that we had in history. It was the worst inflation weve ever had, as you know. Some people say youre wrong about that, it was only in 48 years, but I think 48 years almost sounds worse. The worst inflation weve ever had. So, it made it very difficult, Trump said, underscoring the real?world consequences of ideological experimentation at the central bank.
By contrast, he praised Warsh for repeatedly stressing the need to return to the Feds core duties and to measurable outcomes that matter to working Americans. Kevin has spoken often about the need to restore the Feds integrity by returning to a proper focus on its two functional and really fundamental responsibilities: maintaining price stability and low inflation, and achieving full employment. And we talk about it, weve talked about it often, and right now we have the most people working in the United States than weve ever had, Trump said, tying Warshs philosophy to the employment gains seen under his own leadership.
Trump reminded the audience that record employment has been a hallmark of his economic record and argued that Warsh could help push those gains even further. We have never had as many people working right now in the United States, and its something that I like to say, and its been pretty much that way ever since Ive been president. When I go back to the first term, I had those numbers too, and I kept them, and weve done things that are really amazing, but we can bring it to a new and higher level with Kevin, he said, suggesting that sound money and deregulation can reinforce each other.
He went further, predicting that Warshs leadership could take the American economy to heights that experts once dismissed as unrealistic. I think we can bring it to a level that nobody ever thought possible. By following through on this vision, Kevin will restore confidence in the Fed, which is so important, and among Americans all across the political spectrum, and people from all over the world, and theyre going to be looking to Kevin, probably, and possibly more than any other person thats had your esteemed position before, Trump said, casting Warsh as a global standard?bearer for responsible central banking.
Trump acknowledged that Warsh will be under intense scrutiny but insisted that this attention reflects broad respect rather than partisan suspicion. I think thats true, Kevin, you got a lot of people watching. I fully expect that with the greatest Fed chairs before him, Kevin will safeguard the Feds integrity. Theyll make their own decisions and hopefully make them well, but theyll be listening to Kevin all the way. I really believe that, even if theyre from a somewhat different persuasion, theyre going to be listening to him out of respect, because everybody respects him, he said, emphasizing character and competence over ideology.
Returning to policy, Trump again contrasted Warshs pro?growth instincts with what he portrayed as Powells reflexive tendency to restrain the economy whenever it gained momentum. Thankfully, unlike some of his predecessors, Kevin understands that when the economy is booming, it is thats a good thing. We dont have to go crazy, just let it boom. We want it to boom, we want it to be like nobody has ever had before, because we do have some debt wed like to take care of, and the way you do that is through growth, he said, articulating a classic conservative approach: grow the economy rather than tax and inflate it into submission.
Trump argued that the United States can grow our way out of its fiscal challenges if policymakers resist the temptation to smother prosperity with regulation and rate hikes. Were going to grow our way out of it so fast, and Kevins somebody, and I feel strongly also, we dont want to see it stifled. We want to stop inflation, but we dont want to stop greatness. And so, thats really a very good thing, a very positive thing, and thats what hes looking to do. Hes looking to do positive economic growth. Its so important, and as we discussed, economic growth doesnt mean inflation; it can be just the opposite, actually, he said, challenging the orthodoxy that equates prosperity with instability.
He reiterated that policymakers should not stop the world simply because the economy is performing well, and he praised Warshs commitment to modernizing the Feds internal machinery. But economic growth does not mean inflation. You dont have to stop the world because youre doing well. Kevins also said that hell bring much-needed reform and modernization, transforming obsolete data collection methods, rolling back reliance on inaccurate models, and curtailing the Feds practice of issuing so-called forward guidance. They want to do things on that. I guess its a little complex subject, but its something that Kevin knows about better than probably anybody here, Trump said, hinting that Warshs reforms could make the Fed more transparent and less prone to technocratic error.
Beyond technical reforms, Trump praised Warshs temperament and leadership style, arguing that he is well suited to build consensus without sacrificing principle. He has the temperament and leadership abilities to foster collaboration among the entire board, and I know he will welcome robust debate in his mission to keep prices stable and employment high. Kevin will have the full support of my administration, he said, promising political backing for a chairman who intends to steer the Fed away from fashionable causes and back toward its statutory duties.
Trump also noted that Warshs selection had broad support within his own team, suggesting that the choice reflects a shared conservative vision for monetary policy. Every one of these people felt, including Kevin, by the way, felt so strongly about this choice, and we have no doubt that we have absolutely no doubt, so important, too, so big, so important. I just turned on the television. I wanted to see how the stock markets doing today. The stock markets up 600 points. That means they like you. If they didnt like you he said, using the markets reaction as a real?time referendum on his nominee.
He then cited the specific numbers, underscoring how far the market had come under his leadership and how much further he believes it can go under Warshs stewardship at the Fed. Its actually up to 50,702, so thats as of about 12 minutes ago. Now, who knows? But I think it can only go up. I think with you its only going to go up. That was a number that nobody thought was reachable during my entire four years. If you look at some of the great pundits, they said, well, 50,000 would be impossible during the four years, but sometime after we hit it in the first year, but now were really hitting it, Trump said, arguing that the combination of his policies and Warshs leadership could keep markets on an upward trajectory.
He closed by returning to the theme of records and potential, again tying market performance to confidence in the new chairman. And think of it, its up to 50,702, and S&P likewise set a new record today; they both set new records today, and boy, thats something good, but youre going to bring it to a much different level, believe me. Its good, but it can go much better, and thats what I think youre going to do, he said, leaving little doubt that he views Warshs tenure as an opportunity to restore the Feds integrity, rein in ideological overreach, and unleash the kind of growth that allows America to pay down its debts without sacrificing freedom or prosperity.
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