US President Donald Trump on Friday swore in Kevin Warsh as the chair of the Federal Reserve at a time of rising inflation due to the ongoing war against Iran, a development that has made the near-term interest rate cuts sought by the president increasingly unlikely.
Warsh succeeded Jerome Powell, who was repeatedly criticized by Trump for not heeding his calls for lower borrowing costs. Tapping Warsh for a fouryear term at the helm of the world’s most influential central bank is widely seen as a reflection of Trump’s desire for a change in US monetary policy.
With many investors now betting on rate hikes this year as a result of rising costs, however, Warsh faces a difficult task in steering the Fed to fulfil its dual mandate of promoting price stability and maximum employment.
“When we pursue those aims with wisdom and clarity, independence and resolve, inflation can be lower, growth stronger, real take-home pay higher, and America can be more prosperous — and, no less important, America’s place in the world more secure,” Warsh said at his swearing-in ceremony at the White House.
Kyodo
#TheGlobalNewLightOfMyanmar