Trump on rate freeze: "That’s fine. It doesn’t matter"

[Financial News, New York = Lee Byung-chul] Donald Trump, the U.S. president, publicly expressed confidence in Kevin Warsh, the Federal Reserve System (Fed) chair. That stands in contrast to his harsh criticism of Jerome Powell, the former chair, over interest rate policy.
When reporters asked on the 17th, local time, about the Fed's decision to keep its benchmark rate unchanged, Trump responded calmly, saying, "It's alright, whatever."
Asked about the possibility of a rate hike soon, he said, "It could happen. It's hard to believe, but if it does, it will only weigh on our economy. It's very unusual."
He also voiced trust in Warsh. Trump said, "There is now a very good person at the Fed," adding, "I will respect and follow the direction he wants to take."
That is a clear shift from his previous stance, when he repeatedly attacked Jerome Powell during his presidency, calling him "Too Late" and a "terrible chair" while pressuring him to cut rates.
Markets say Warsh's long-standing ties to Trump and his background as an economic adviser could make future relations between The White House and the Fed more amicable than before. Still, at his first Federal Open Market Committee (FOMC) meeting that day, Warsh kept the benchmark rate unchanged while leaving room for further hikes in the dot plot and economic outlook, signaling that he intends to preserve monetary policy independence.



pride@fnnews.com Lee Byung-chul Reporter