Kevin Warsh faces conflicting pressures as new Fed chair sworn in at White House
By
The Economist
Yesterday's bagel. Skim it, don't savour it.
Summary
The article covers Kevin Warsh's first day as Federal Reserve chairman, sworn in at the White House for the first time in nearly 40 years—an unusual setting for an institution that values political independence. Donald Trump assured Warsh he should be "totally" independent, but later at a rally predicted interest rates would come down, signaling political pressure. The new Fed chair faces the challenge of balancing the demands of his colleagues, the market, and President Trump.
Key quotes
· 3 pulledFor the first time in nearly 40 years, the chairman of the Federal Reserve was sworn in at the White House—an odd setting for the head of an institution that prides itself on political distance.
Donald Trump nevertheless assured his hand-picked inflation dove that he should be 'totally' independent.
'I had a rotten head of the Fed, now I have a great head of the Fed,' he boasted, before predicting that interest rates would come down.
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