Kevin Warsh Takes Oath as Fed Chair; Markets Say Trump Now Owns the Economic Scorecard

BlockBeats reports that Kevin Warsh, personally selected by U.S. President Donald Trump, was sworn in on May 25 as chair of the Federal Reserve. Analysts say the change shifts political accountability for economic growth and inflation more squarely onto Trump. According to the report, Trump had repeatedly blamed former chair Jerome Powell for keeping rates too high, weighing on housing activity and slowing the economy. With Warsh now leading the central bank, investors increasingly view Fed policy as closely aligned with "Trump economics." The U.S. economy is facing mounting strains. The 30-year mortgage rate has moved above 6.5%, PCE inflation has risen to 3.5%, and the national average gasoline price has climbed past $4.55 a gallon. Markets worry that persistent inflation could force the Fed to keep raising interest rates, potentially adding to headwinds for Republicans heading into the midterm elections. The report also notes that Warsh has backed scaling back forward guidance and allowing more policy uncertainty. Dissenting votes at the Fed's April meeting hit the highest level in nearly 30 years, pointing to a pronounced split inside the institution.