Kevin Warsh replaces Jerome Powell as US Federal Reserve chair

Kevin Warsh has officially been sworn in as the new chair of the United States Federal Reserve, replacing Jerome Powell after a divisive confirmation process in the Senate.

Warsh, 56, took the oath of office on Friday after lawmakers voted largely along party lines to approve his appointment to both the Federal Reserve Board and the role of chairman.

His appointment comes as the central bank faces growing political pressure over interest rates and inflation.

During the ceremony, US President Donald Trump said: “I want Kevin to be totally independent and do a great job. Don’t look at me and don’t look at anybody. Just do your own job”.

Democratic Senator Elizabeth Warren had earlier accused Warsh during confirmation hearings of being a “sock puppet” for Trump, an allegation Warsh rejected.

The new Fed chair will oversee monetary policy at a time when inflation remains elevated.

Consumer prices rose 3.8 percent annually in April, according to the latest figures from the Bureau of Labor Statistics, while petrol prices have surged following conflict involving Iran.

Warsh said after being sworn in that he was “not naive” about the economic challenges facing the country and insisted inflation could fall while economic growth remained strong.