US President Donald Trump on Wednesday said he would have not nominated Kevin Warsh as the next Federal Reserve Chair if he expressed interest to hike interest rates.
Speaking at an NBC interview, Trump revealed details behind the rationale as to why he chose Warsh to lead the Fed.
Being asked if Kevin Warsh understands that he has to lower Fed interest rates, Trump responded, “I think he does, but I think he wants to anyway.”
Responding to a question on whether the new Fed Chair would have been nominated if he expressed interest to hike the interest rates, Trump said, “I mean, if he came in and said, ‘I want to raise them …’ He would not have gotten the job.”
The US President said that the country is already “way high” in interest and there was there was “not much” doubt the Fed would lower rates.
“We have now, with me and with all the money, I’m — I’ve always been good at money — and with all the money coming into our country, we’re a rich country again,” he said.
“We have debt, but we also have growth, and the growth will soon make the debt look very small,” Trump added.
Trump’s comments could come up during Warsh’s confirmation process, where the Fed’s independence will likely be a central topic.
“Well, I mean, in theory it’s an independent body,” he said.
He claimed that he knew the economy better.
“But I think, you know, I’m a smart guy,” he continued. “I know the economy better than almost everybody.”
Republican Senator Thom Tillis, a member of the Banking Committee, has pledged to block any of Trump’s nominees to the institution until the Justice Department ends an investigation into the Federal Reserve’s renovation.
However, Trump did not seem to be much bothered by the threats.
“A lot of people say a lot of things,” he said. “The investigation is being handled by [Attorney General] Pam [Bondi] and US Attorney] Jeanine [Pirro] and the people. They will make their own decision.”
Who is Kevin Warsh?
Kevin Warsh, a former Fed governor, has been nominated by Donald Trump as the next Chairman of the Federal Reserve.
Warsh served on the US central bank’s Board of Governors from 2006 to 2011. He is also close to Donald Trump and has advised the president on economic policy, according to a Bloomberg report.
Jerome Powell’s term ends in May this year, but he is not obligated to leave the Fed’s Board of Governors until 2028.