Will the new Fed chief start with cuts? Trump: He wants the same thing I want

President Donald Trump said Friday that he had not asked his Fed chair nominee Kevin Warsh to lower interest rates, but added that Warsh intended to do so. He also dismissed concerns that the Senate might block his nomination and suggested that he supported an investigation into the current Fed chairman.

Trump spoke about the announced nomination for Warsh during a conversation with reporters in the Oval Office. When asked whether he asked his candidate to lower interest rates in line with his repeatedly expressed demands, the president replied that he “didn't want to ask him this question” because it would be inappropriate.

– But he definitely wants to cut off the feet. I have been watching him for a long time, he added. He praised his candidate's intelligence and emphasized his appearance several times, claiming that he “fits the role”.

He said he was not concerned about Warsh's past views or his reputation as an “inflation hawk” who pushed for higher interest rates during his tenure as a member of the Fed's Board of Governors. Warsh was known for opposing cuts during the global financial crisis, even though his fears about a spike in inflation back then did not come true.

– He wants the same thing as me. But I think there were times when you really needed to raise rates, Trump said.

The president also assured that he was not concerned about Republican senator Thom Tillis's announcement of blocking Warsh's nomination. Tillis on Friday confirmed that while he considers Warsh a qualified candidate, he will not support his nomination until the criminal investigation into current Fed Chairman Jerome Powell ends. Trump reminded that Tillis will not run for re-election.

– If he doesn't approve, we'll have to wait for someone to come along and approve it, right? That's it, concluded the president. The term of the senator – who, as a member of the banking committee, can block Warsh's candidacy with the support of Democrats – expires in January next year, while Powell's term as chairman ends in May this year.

At the same time, Trump suggested that he supported the ongoing investigation of Powell in a case involving the costly renovation of Fed buildings.

– He is either incompetent or a scam, so we will find out – he noted.

Tillis, Powell himself and a number of politicians on both sides said the investigation into Powell was political in nature and related to the Fed chairman's failure to cut interest rates as quickly as the president requested.

From Washington Oskar Górzyński (PAP)

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