Trump pressures Warsh for immediate rate cuts ahead of Senate hearing

US President Donald Trump stated that he would be disappointed if his nominee for Federal Reserve Chairman, Kevin Warsh, does not lower interest rates immediately upon taking office, should the Senate approve his appointment.

Trump’s remarks to CNBC on Tuesday came hours before the start of a Senate Banking Committee hearing prior to the confirmation of Warsh’s appointment.

During the session, Warsh emphasized the necessity of maintaining the Federal Reserve's independence; however, he simultaneously called for a fundamental shift in the methodology of managing monetary policy.

Warsh explained that this change is necessary because inflation has become less severe than it was years ago, yet citizens still feel the effects of high living costs. In his view, this is due to errors made in the fight against inflation during the COVID-19 pandemic.

The term of the current Fed Chair, Jerome Powell, ends on May 15, but he could remain in office longer if Warsh’s confirmation is delayed. The timing of the committee's recommendation or the full Senate vote on the appointment remains uncertain.