Trump Attacks 'Hostile' Fed, Hints Warsh May Act on Rates
President Trump renewed his assault on the Federal Reserve, calling it 'hostile' and signaling Kevin Warsh may move independently on interest rates.
President Donald Trump escalated his public pressure campaign against the Federal Reserve on Monday, branding the central bank "hostile" and suggesting that Fed governor Kevin Warsh would do what he "has to do" on interest rates — language widely interpreted as a signal that Warsh could move to cut rates if elevated to a more prominent role at the institution.
Trump's remarks represent one of his sharpest broadsides yet against a central bank that has held rates steady as policymakers weigh stubborn inflation risks against a slowing growth outlook. By invoking Warsh's name specifically, Trump appeared to telegraph his preference for a Fed leader more aligned with his push for lower borrowing costs, raising fresh questions about the Fed's institutional independence.
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The president also confirmed he still intends to remove Fed governor Lisa Cook from the central bank's board of governors, a move that would be legally unprecedented and almost certain to face court challenges. Cook, appointed by President Biden, has been a frequent target of criticism from Trump's orbit over her monetary policy positions.
Analysts warn that sustained political interference with the Fed could unsettle financial markets, undermine confidence in the dollar, and complicate the central bank's inflation-fighting credibility at a moment when price pressures remain a defining concern for American households. The Fed's independence has historically been viewed by investors worldwide as a cornerstone of U.S. economic stability.
The White House has yet to formally announce any personnel action against Cook or any nomination to reshape the Fed's leadership structure. Continue reading at MarketWatch.com
