In a recent interview with NBC Nightly News anchor Tom Llamas, President Donald Trump discussed his recent nomination of Kevin Warsh to lead the Federal Reserve, emphasizing his expectation that interest rates will be lowered. Trump expressed his belief that the central bank should align with his economic perspective, claiming he understands the economy “better than almost anybody.” He indicated that Warsh would not have been chosen if he intended to raise interest rates, implying a more aggressive easing approach to monetary policy.
During the interview, Trump asserted that current interest rates are too high and stated, “We’re way high, OK?” He noted that under his administration, there has been significant economic growth and emphasized that reducing interest rates would further benefit the economy. Trump referenced past actions taken to reduce the federal workforce and argued that his approach constitutes “making America great again,” contrasting it with Democratic hiring practices.
Llamas pressed Trump on whether he believes the Federal Reserve chairman is ultimately accountable to the president or operates independently. Trump conceded that the Fed is theoretically an independent body but suggested that the chairman should be receptive to his economic guidance. He conveyed confidence in Warsh’s understanding of his expectations regarding rate cuts, reinforcing the notion that the Fed should respond to economic conditions as he sees them.
The appointment of Warsh follows Trump’s ongoing criticism of Jerome Powell, the current Fed chair, for not being aggressive enough in lowering interest rates. It’s important to note that the Federal Open Market Committee, comprised of multiple members, ultimately determines interest rates, which means the chair does not have unilateral authority in this regard.
Trump’s views on inflation were also highlighted, as he pointed out that the recent inflation rates have remained low, further supporting his argument for lowering interest rates. He claimed that there is no immediate threat of rising inflation, a sentiment that aligns with recent statistics indicating a decline in inflation rates compared to the previous year.
Additionally, the interview addressed the investigation into the Federal Reserve that has raised concerns among some senators regarding Warsh’s nomination. Trump shrugged off the inquiries, stating that the investigation is being handled by the appropriate authorities and that it should not impact Warsh’s confirmation process.
Overall, the conversation reflects Trump’s ongoing efforts to shape the economic narrative as he prepares for the upcoming election while positioning his administration’s economic policies as a continuation of growth and stability.