Trump Swears in New Fed Chair Kevin Warsh Amid Rising Inflation and Stalled Peace Talks

Added: 2026-05-26

[00:00:01]As Americans prepare to hit the road, rails, and skies this holiday weekend, President Trump looking towards a future economic forecast, swearing in Kevin Worsh, his handpicked choice to head up the Federal Reserve.

[00:00:14]>> So, no one in America is better prepared to lead the Federal Reserve than Kevin Worsh.

[00:00:19]>> Worsh replaces Jerome Pal, whose term is ending this month. Pal was also handpicked by President Trump, but after an investigation that Pal viewed as damaging to the independence of the Fed, Trump withdrew his support for the longtime central banker. The president has also made no secret of pushing for lower interest rates, publicly pressuring Pal, but today Trump changed his tone with his new chairman.

[00:00:42]>> I want Kevin to be totally independent.

[00:00:45]I want him to be independent and just do a great job. Don't look at me. Don't look at anybody. Just do your own thing.

[00:00:51]Recently, the board signaled the rate hike could be coming. That's because the economy has been a roller coaster. The stock market hitting record highs, but inflation rising to 3.8% last month, outpacing wages. The war in Iran sending gas prices soaring, now averaging $455 a gallon and even higher in some areas of the country. That's hitting Americans hard this holiday weekend.

[00:01:16]>> $82.55 for 19.3 gall. So, how do you feel about that?

[00:01:23]>> Stings.

[00:01:23]>> I'm just wondering how high it's going to get until people can't go to work.

[00:01:27]>> The high prices forcing drivers to get creative with their rides. Molly High Totower turned a Barbie dream camper into a fully functioning road vehicle.

[00:01:36]It has a 2gallon one piston engine complete with seat belts and lights.

[00:01:41]>> Once I started seeing how um gas prices were and things like that, I was like, you know what? I'm going to start making little mini cars.

[00:01:49]>> With oil tankers stuck in the straight of Hormuz for months now, analysts predict gas prices will keep climbing.

[00:01:55]Peace talks with Iran are at a standstill. And as the diplomatic push stalls, President Trump is now looking for a new director of national intelligence. Tulsi Gabbard is stepping down effective next month. She told the president today she needs to be with her husband who was recently diagnosed with an aggressive form of bone cancer. Gary Grumbach, NBC News, Washington.