Kevin Warsh, whose broad criticism of current US ⁠Federal Reserve officials, playbook for rate cuts and ties to President Donald Trump elevated him past ⁠other contenders to lead the central bank, was sworn in as Fed leader on Friday at a pivotal moment for monetary policy and the American economy.

Warsh, wearing a dark suit and tie and accompanied by his wife, Jane Lauder, heiress to the Estee Lauder fortune, was sworn in by Supreme Court Justice Clarence Thomas after a lengthy introduction by Trump.

The White House’s East Room was peppered with top cabinet officials, including Treasury Secretary Scott Bessent, and long-time friends of Warsh, including former secretary of state Condoleezza Rice.

Trump, who has been incessant in his criticism of former chair Jerome Powell, said Warsh would have the “full ‌support of my administration” and wanted him to be “fully independent” in his new role, but also urged him to recognise that “growth does not mean inflation”.

Calling it the “honour of a lifetime to be called back into public service”, Warsh, in brief comments afterward, said: “To fulfil this mission, I will lead a reform-oriented Federal Reserve, learning from past successes and mistakes, both escaping static frameworks and models and upholding clear standards of integrity and performance.”

Awaiting him is an unfolding boom in AI technology that is reshaping the economy in ways Fed officials say could be profound for workers, companies and consumers, but will be hard for Warsh and his colleagues to assess in real time.