Kevin Warsh was sworn in as chair of the Federal Reserve for a four-year term on Friday, as financial markets watch US monetary policy amid persistent inflation pressures.

The swearing-in ceremony, held by US President Trump at the White House East Room, was attended by senior government officials, lawmakers, Supreme Court justices and business leaders, with Justice Clarence Thomas administering the oath of office.

"I want Kevin to be totally independent. I want him to be independent and just do a great job," Trump said. "Don't look at me, don't look at anybody. Just do your own thing and do a great job, okay?" he said.

Warsh is the first Fed chair to be sworn in at the White House since Alan Greenspan in 1987, according to CNBC.

Warsh, 56, succeeds Jerome Powell and becomes the 17th chair of the Federal Reserve. Powell, who has led the central bank since 2018, said he would remain on the Fed's Board of Governors after stepping down as chair.

"Our mandate at the Fed is to promote price stability and maximum employment," Warsh said. "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 is more secure," he said.

"To fulfill this mission," Warsh said he will "lead a reform-oriented Federal Reserve, learning from past successes and mistakes, escaping static frameworks and models, and upholding clear standards of integrity and performance."

Warsh was a member of the Federal Reserve Board of Governors from 2006 to 2011. After leaving the Fed, he has taught at the Stanford Graduate School of Business and the Hoover Institution.

Warsh's appointment comes at a time when the Trump administration has repeatedly called for lower interest rates while promoting tax cuts and deregulation measures aimed at boosting economic growth.

Over the past year, the Trump administration has sought greater influence over the Federal Reserve. Trump attempted to remove Biden-appointed Governor Lisa Cook over fraud allegations and directed the US Justice Department to investigate Powell over a building renovation, a move a federal judge ruled was designed to pressure Powell into cutting rates or stepping down.

The investigation was dropped after Senator Thom Tillis of North Carolina threatened to block Warsh's confirmation vote unless the probe was terminated.

Warsh has called for "regime change" at the Federal Reserve, including reforms to how the institution measures and communicates economic data. He has also expressed support for lowering interest rates. He also said he would rely on his own judgment in setting monetary policy and would not follow instructions from the White House.

As of April, the Federal Reserve has kept benchmark interest rates at a 3.5 percent to 3.75 percent range, as policymakers seek to keep borrowing costs elevated to combat persistent inflation and return it toward the central bank's 2 percent target.

Recent economic data has complicated expectations for monetary easing. According to a report released on Tuesday by the US Labor Department, consumer prices in April were up 3.8 percent from a year ago, marking their highest level since May 2023. Price pressures have increased following disruptions to tanker traffic in the Strait of Hormuz amid the US-Israeli war on Iran, pushing up crude oil and gasoline prices.