Trump Says Warsh Faces 'Hostile' Fed Board, Must 'Do What He Has to Do'

U.S. President Donald Trump has claimed that new Federal Reserve Chair Kevin Warsh is facing a difficult situation in implementing his desired monetary policy due to opposition from fellow board members.

In an interview with business news channel CNBC on July 2 (local time), President Trump stated, "He has a somewhat hostile board," adding, "Unfortunately, it seems the board is trying to do the wrong thing."

"Warsh is a great person and a great professional," Trump said, but added, "I know where he wants to be, but he has to do what he has to do."

This remark is being interpreted as a different approach from the months of direct pressure Trump placed on former Chair Jerome Powell to cut interest rates. It is seen as a move to grant Chair Warsh discretion while preemptively shifting responsibility onto the Fed board.

While President Trump has long demanded interest rate cuts, Chair Warsh has emphasized the central bank's independence in monetary policy decisions.

The comments came immediately after the release of a jobs report showing that non-farm payrolls increased by only 57,000 in June, significantly missing Wall Street expectations of 115,000.

Following the release of the jobs report, investors scaled back bets on the possibility of interest rate hikes this year.

The weaker-than-expected employment data is raising doubts about the economic outlook for President Trump, who needs to highlight economic achievements ahead of the midterm elections in November.

President Trump also criticized the Fed for being overly obsessed with inflation.

"They have a phobia, a derangement syndrome about inflation," he argued, adding, "Growth is not just bad for inflation; it can also be good."

He continued, "Back in 2020 or 2025, when good numbers were released, the stock market would go up, but now it's the exact opposite," saying, "It looks like they are trying to kill strength and kill success."

President Trump won re-election on a platform of lowering prices as the consumer sentiment index neared record lows and voters complained about the cost of living, but the Republican Party is now on the defensive regarding economic issues due to soaring inflation.

President Trump also reaffirmed his plan to push for the removal of Fed Governor Lisa Cook.

Earlier this week, the Supreme Court ruled 5-4 to allow Governor Cook to remain in her position while she pursues a lawsuit against the administration's attempt to remove her.

President Trump stated, "The Supreme Court sent the case back based on procedure, not the substance of the matter," adding, "We will pursue it again by following the perfect process and procedure."

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.