Entrusting interest rates... Trump "Fed Board 'hostile'" fiercely criticizes

▲ Donald Trump, Kevin Warsh, Federal Reserve (Fed)/AI generated image

U.S. President Donald Trump has once again targeted the Federal Reserve (Fed). While stating that he would entrust interest rate decisions to Kevin Warsh, the Chairman of the Federal Reserve (Fed), he slammed the Fed Board as “hostile.”

According to financial media outlet MarketWatch on July 2 (local time), Trump stated in a CNBC interview that he would not advise Warsh on interest rates following the latest U.S. employment report. He told Warsh, “He has to do what he has to do.”

At the same time, Trump strongly criticized the internal atmosphere of the Fed. He claimed that Warsh was facing “a somewhat hostile” Board at the Fed. While maintaining his existing stance of pushing for interest rate cuts, he avoided directly instructing Warsh.

These remarks came immediately after the release of the June employment report. The market is watching whether signs of slowing employment will change the Fed's interest rate path. Trump has publicly favored low interest rates all along.

Trump also reiterated his intention to dismiss Fed Governor Lisa Cook. MarketWatch reported that Trump reconfirmed his push to dismiss Cook. This indicates that the tension between the White House and the Fed over interest rate policy is also spilling over into personnel matters.

Warsh officially took office as the new Fed Chairman at a White House inauguration ceremony on May 22. Trump's remarks reignite controversy over political pressure regarding the independence of interest rate decisions. The market is watching to see what balance Warsh will strike between Trump's preference for low interest rates and the cautious stance within the Fed.

[Key Article Summary]

-Trump criticized the Fed Board as “hostile,” while stating that he would not directly instruct Warsh on interest rate decisions.

-Trump reiterated his intention to push for Lisa Cook's dismissal, maintaining his existing stance of favoring low interest rates.

-These remarks, coupled with signs of slowing employment, simultaneously highlighted Fed independence, the interest rate path, and personnel conflicts within the central bank.

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