Trump names Kevin Warsh as his pick to replace Jerome Powell at the Federal Reserve

Trump names Kevin Warsh as his pick to replace Jerome Powell at the Federal Reserve

President Donald Trump on Friday in the Oval Office denied that he directly asked his pick for Federal Reserve chair, Kevin Warsh, to cut interest rates.

“We talk about it, and I’ve been following him, and I don’t want to ask him that question. I think it’s inappropriate, probably,” Trump said. “Probably would be allowed, but I want to keep it nice and pure. But he certainly wants to cut rates. I’ve been watching him for a long time.”

Trump has been publicly shaming current Fed Chair Jerome Powell because the central bank hasn’t lowered rates as quickly or dramatically as the president would like. That’s why some economists have questioned Trump’s pick of Warsh, who has publicly agreed with the president in recent months but has a long record from his prior time at the Fed of pushing for higher interest rates.

Trump said he wasn’t concerned about Warsh’s reputation as an inflation hawk, acknowledging that there have been times when the Fed needed to raise rates.

“Yeah, I’ve had times when I think you’ve had to really have rate hikes too,” Trump said. “But he’s very smart, very good, strong, young – pretty young – and he’s gonna do a good (job).”