WASHINGTON: Kevin Warsh was sworn in as chair of the US Federal Reserve on Friday at a pivotal moment for an American economy where surging gasoline prices due to the Iran war are pushing up inflation and eroding consumer sentiment, potent ingredients for a policy dilemma with political implications.

New Fed chief inherits an institution split over rates, with inflation stuck above the 2% goal and energy costs climbing due to the Iran war

Rate hikes now loom as a possibility for Warsh's Fed, a sharp turn from the rate-cut environment that defined Trump's search for a new chair