EXCLUSIVE — President Donald Trump expressed confidence in incoming Federal Reserve Chairman Kevin Warsh and said he would leave the interest rate decisions to him.The Washington Examiner spoke to Trump during a Tuesday morning phone call and pointed out that investors are now pegging a higher chance of an interest rate hike rather than a cut by the end of the year, and asked him whether he thinks Warsh will deliver a cut.“I’m going to let him do what he wants to do,” Trump responded. “He’s a very talented guy, he’s going to be fine, he’s going to do a good job.”
TRUMP BULLISH THAT HOUSING BILL WILL MAKE IT TO HIS DESK
The remarks come despite the intense pressure campaign from the White House on outgoing Fed Chairman Jerome Powell to cut interest rates. It also comes after Warsh faced major questions about Fed independence during his confirmation hearing last month.
Warsh is staring down a difficult macroeconomic landscape that has only become more tricky with Powell’s decision to remain on the board.
The problem facing Warsh is that Trump has made it clear he wants lower interest rates, but both the higher inflation environment and Powell’s remaining on the board are making that far less likely.
