Trump Attacks 'Hostile' Fed, Eyes Cook Removal and Warsh Rate Move
President Trump escalated his war with the Federal Reserve, signaling Kevin Warsh may act on rates and confirming plans to oust Governor Lisa Cook.
President Donald Trump sharpened his attack on the Federal Reserve Thursday, calling the central bank "hostile" and declaring that Fed governor Kevin Warsh "has to do what he has to do" on interest rates — remarks widely interpreted as pressure on Warsh to push for cuts. The statement marks one of Trump's most direct public challenges yet to Fed independence, a principle long considered sacrosanct in U.S. monetary policy.
Trump also confirmed he still intends to remove Fed Governor Lisa Cook from the central bank's board, a move that would be legally contested and historically unprecedented. Cook, appointed by President Biden, has been a target of Trump allies who view the board's composition as misaligned with the administration's economic agenda. Any attempt to force out a sitting Fed governor would almost certainly trigger a constitutional showdown over executive authority.
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The comments inject fresh uncertainty into financial markets already navigating questions about the Fed's rate path and the central bank's operational independence. Investors and economists have closely watched Trump's escalating rhetoric toward Fed Chair Jerome Powell, and Thursday's interview signals the pressure campaign is widening to include other board members and potential successors.
Analysts note that publicly naming Warsh — a former Fed governor seen as a possible future chair — in the context of rate decisions could complicate Warsh's own standing and credibility if he were ever nominated to lead the institution. The Fed's ability to set monetary policy free from political interference is viewed by markets as a core stabilizing force for the U.S. economy and the dollar's global reserve status.
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