Now Reading: Trump Repeatedly Calls Fed Chair Warsh on Economy and Iran War
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Trump Repeatedly Calls Fed Chair Warsh on Economy and Iran War
US President Donald Trump has spoken repeatedly with Federal Reserve Chairman Kevin Warsh since his appointment less than three months ago, according to people familiar with the conversations, The Hindustan Times reports.…
The Story in Brief
US President Donald Trump has spoken repeatedly with Federal Reserve Chairman Kevin Warsh since his appointment less than three months ago, according to people familiar with the conversations, The Hindustan Times reports. Trump has sought Warsh’s views on the economic effects of the war in Iran and the rapid growth of artificial intelligence. The frequency of the calls differs from recent practice, when presidential contact with Fed chairs was usually formal and scheduled.
It is unclear whether Trump and Warsh have discussed interest rates. One person told the newspaper that Trump has not raised rates since Warsh was confirmed by the Senate. The contacts nevertheless raise concerns about the Fed’s independence, after Trump previously urged the central bank to cut rates and criticised former chair Jerome Powell.
The Indian Opinion
Claims that every presidential call means the Fed has lost its independence go too far, since the reported discussions may concern the wider economy rather than rates. But the opposite story, that personal access poses no risk, is also too casual. Trump has openly wanted influence over borrowing costs, while the Fed must make unpopular decisions when needed. The useful test is simple: do Warsh’s rate decisions and public reasoning withstand pressure, including when they disappoint the White House?
Source: hindustantimes.com
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