Trump: "Warsh Didn’t Promise, But He Wants Rate Cuts"

[Financial News]


Donald Trump said on the 30th (local time) that Kevin Warsh, his nominee to lead the Fed, will move to cut interest rates.
On the same day, Trump selected Warsh, a former Fed governor, as his choice to succeed the current Fed chair.
When Jerome Hayden Powell, who has been at odds with Trump over interest rate cuts, sees his term end in May, Warsh is set to take his place.
At the executive order signing ceremony at the White House, Trump took questions from reporters about the Warsh nomination and expressed confidence that the Fed will lower rates.
Despite a drop on the New York Stock Exchange (NYSE) that day, led by Big Tech, on concerns over Warsh’s perceived "hawkish" stance, Trump insisted that the Fed under Warsh would actively pursue rate cuts.
Asked whether Warsh had agreed in advance to push for rate cuts if he became Fed chair, Trump answered, "No."
However, Trump said he had discussed interest rate cuts with his nominee and had watched him closely over time, adding that Warsh wants lower rates. Based on his observations, Trump said that while Warsh has not made any promises, he is optimistic that once Warsh takes office as Fed chair, he will move to cut rates.
Seemingly mindful of criticism that he is undermining central bank independence, Trump chose his words more carefully that day.
He said he does not even intend to ask Warsh about rate cuts, arguing that it would "probably be inappropriate and not allowed" for a president to question a Fed chair nominee about cutting rates. Trump added, "I want to keep the process nice and pure," signaling a different tone from his previous pressure on the Fed, which he had criticized for refusing his calls for "bold" rate cuts.
Even so, he hinted that under "Warsh’s Fed" there would be a strong, if unspoken, alignment in favor of rate cuts.
Trump went on to say he was confident that Warsh’s confirmation in the United States Senate would proceed smoothly.
He called Warsh "the perfect candidate people have been looking for," adding, "Top of his class at the best schools, everything is perfect. He has it all." Trump argued that because Warsh graduated from leading schools with excellent grades and has impeccable qualifications, there should be no obstacles in the United States Senate Committee on Banking, Housing, and Urban Affairs.
Trump stressed that Warsh "will do a terrific job" and that "he loves this country."

dympna@fnnews.com Song Kyung-jae Reporter