Washington DC - New Federal Reserve chair Kevin Warsh vowed to be "reform-oriented" as he was sworn in at the White House on Friday, with President Donald Trump insisting the central bank chief would be "totally independent."

Trump has exerted unprecedented pressure on the central bank to reduce interest rates, attempting to fire a Fed governor and pursuing a criminal probe against Warsh's predecessor, Jerome Powell.

"To fulfill 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," Warsh said.

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He called for central bankers to pursue their goals "with wisdom and clarity, independence and resolve," adding that "inflation can be lower, growth stronger, real take-home pay higher, and America can be more prosperous" if they did so.

Trump, who frequently criticized and insulted Powell, praised Warsh and said he wanted him to be fully independent, before urging the Fed chair to let the economy "boom."

"Kevin understands that when the economy is booming, that's a good thing. We want to stop inflation, but we don't want to stop greatness," Trump said.

Warsh has backed rate cuts in the past, even as the world's largest economy faces inflation at a three-year high.

Justices Clarence Thomas and Brett Kavanaugh were among those in attendance on Friday, with the former administering the oath of office to Warsh.

It is unusual for the chief of the Fed – an independent, non-partisan body that sets monetary policy according to a dual mandate on inflation and employment – to be sworn in at the White House.

At his Senate confirmation hearing, Warsh insisted that he would "absolutely not" be a puppet for the president.

Warsh will take over a divided Fed facing high inflation – fueled by the energy price surge that resulted from Trump's war on Iran – and a labor market showing signs of weakness.

The central bank has a dual mandate to keep inflation to its long-term target of 2% while also maintaining maximum employment.

US consumer inflation in April came in at 3.8%, a three-year high, with American households battered by years of above-expected price increases since the pandemic.

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Warsh has argued that productivity gains from artificial intelligence-led innovation will allow the US economy to grow rapidly without adding to inflation.

The US unemployment rate has remained relatively stable at around 4.3% for the last year. But job growth – often used as a proxy for economic activity – has see-sawed wildly between expansion and contraction from month to month.

That situation – high inflation and inconsistent job growth – has left the Fed in a potentially sticky situation of having to choose between its mandates.

"Kevin Warsh will not be able to deliver the rate cuts that the president wants," said David Wessel, senior fellow at the Brookings Institution. "At some point, the president may grow impatient and will begin attacking Mr. Warsh as he did Jerome Powell."

Warsh takes over at "a time of disruption and rebalancing in the overall authority of the president," said Columbia Law professor Kathryn Judge, whose research focuses on central banking.

Potentially adding to Warsh's challenges will be the fact that his predecessor Powell has chosen to remain on the board as a member – an unusual but not unprecedented move for an outgoing chair.

Powell cited threats to the Fed's independence as the reason for his decision.

On Friday, White House economic advisor Kevin Hassett said he hoped Powell would soon "step aside" so Warsh could "have complete and easy control of the Fed."

Fed Governor Lisa Cook's challenge against her dismissal is pending before the Supreme Court.