President Trump expressed measured confidence in Federal Reserve Chairman Kevin Warsh on Wednesday after the new central bank chief wrapped up his first rate-setting meeting with a decision to keep interest rates where they are. Fed projections released alongside the decision showed that nearly half of the central bank’s policymakers believe a rate increase will be necessary at some point this year.
When asked about the Fed’s choice to hold rates steady while speaking from France, Trump kept his response brief. “It’s all right. Whatever,” the president said.
The low-key reaction was a stark departure from Trump’s treatment of Warsh’s predecessor, Jerome Powell, whom the president repeatedly attacked with insults — calling him a moron and a knucklehead, among other things — for declining to cut rates. Trump has long argued that the central bank should lower borrowing costs to support the housing market, strengthen the broader economy, and bring down the cost of government borrowing.
Trump had no such harsh words for Warsh, whom he has previously praised as looking like he came straight out of central casting for the role.
When reporters raised the possibility of a rate hike, Trump acknowledged it could happen but expressed trust in his new Fed chief. “It could happen,” he said. “It’s hard to believe. It just keeps the country down and it’s so, it’s so, unusual. But we have a very good guy over there right now so I’m guided by what he wants.”
At a press conference following the rate decision, Warsh avoided offering any guidance on where interest rates might be headed. He also sidestepped a question about whether he had spoken directly with the president since taking the top job at the Fed last month.
Warsh did, however, acknowledge meeting multiple times with Treasury Secretary Scott Bessent. “So on the president, I don’t have anything for you,” Warsh said. “With respect to the Treasury secretary, he has been posting pictures of our breakfast, so … I don’t think I can deny that the long tradition at the central bank is that the Fed chairman and the Treasury secretary meet weekly. I think we’ve pulled off three of those so far. Believe he’s overseas this week, so this will be the exception of the rule.”
During his Senate confirmation hearing, Warsh had told lawmakers he intended to work closely with the administration on matters outside of monetary policy.
