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Trump said he and Warsh have discussed returning the Fed to its two core goals: maximum employment and stable prices.
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He said that the U.S. currently has the highest number of people working, touting the fact that this has been the case under his presidency since his first term.
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Trump expressed confidence that Warsh will restore trust in the Fed across the political spectrum.
President Donald Trump on Friday said that the U.S. economy and Americans “suffered the worst inflation” under the previous administration as he led a ceremony swearing in Kevin Warsh as the next Federal Reserve Chair.
During his speech, Trump said that the Fed lost its way in the eyes of many over the past few years, while adding that the central bank got distracted by concerns far removed from its mission and mandate.
“While the last administration blew out the deficit, Americans suffered the worst inflation that we had in history. It was the worst inflation we’ve ever had,” he said.
Trump added that he and Warsh have discussed returning the Fed to its two core goals: maximum employment and stable prices. He touted what he described as record employment levels, saying that the labor market has remained strong throughout his time in office.
Meanwhile, the 10-year Treasury yield stood at 4.57% on Friday, edging lower by a basis point but hovering at the highest level since January 2025. The 30-year Treasury yield fell by three basis points, hovering at 5.08%, the highest in about 31 months.
The iShares 20+ Year Treasury Bond ETF (TLT) was up 0.15% at the time of writing, while the iShares 7-10 Year Treasury Bond ETF (IEF) was down 0.05%.
Trump’s Message To Warsh
Trump expressed confidence that Warsh will restore trust in the Fed across the political spectrum.
“I want Kevin to be totally independent. I want him to be independent and just do a great job. Don’t look at me; don’t look at anybody. Just do your own thing, and do a great job,” he said in a message to Warsh.
He said that he wants the U.S. economy to grow its way out of the rising fiscal deficit, while noting that economic growth doesn’t mean inflation.
“People all over the world are going to be looking at Kevin… probably and possibly more than any other person that’s had your esteemed position before,” he said.
Warsh Says He Will Lead A Reform-Oriented Fed
Warsh, who was sworn in as the Fed Chair by Supreme Court Justice Clarence Thomas, said that he will lead a reform-oriented central bank.
