Fed Chair Refuses to Discuss Conversations With Trump, Touts ‘Independence’ After Rate Hike

Federal Reserve Chair Kevin Warsh refused to discuss his private conversations with President Donald Trump on Wednesday, instead emphasizing the central bank’s “independence” after officials voted to raise interest rates despite Trump’s repeated demands for lower borrowing costs.

News broke earlier on Wednesday that the board had voted unanimously to raise interest rates by 0.25%, with The Wall Street Journal further reporting that officials expect at least one more increase before the end of the year.

During a press conference later in the day, Warsh fielded a question about his talks with Trump, who posted on Truth Social less than two weeks ago, “LOWER THE RATE OR I’LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT.”

“What is your message here to President Trump?” ABC News’ Elizabeth Schulze asked Warsh.

Laughing, the Fed chair responded, “I’ve got nothing for you on the discussion with the president,” going on to emphasize that “the least well-off [Americans] have the most to gain from stable prices. The decision we made today was the right decision to deliver on the remit that Congress gave us to ensure stable prices.”

Later in the presser, Warsh was asked by the Washington Examiner’s Zach Halaschak, “What would you say to investors who sort of believe this is another test of the Fed’s independence, and when was the last time you spoke with the president? Do you anticipate a post-decision meeting?”

Again laughing, the Fed chair reiterated, “I don’t have anything for you on discussions with the president, um, and I’m not a Wall Street newsletter. Part of the independence of the Federal Reserve is that we stay in our lane. Independence is a two-way street. We let people that do trade policy and fiscal policy stay in their lane, too. That’s how we can stand up here and call ’em the way we see ’em.”

The president hand-picked Warsh to replace former Federal Reserve Chair Jerome Powell in January, following clashes between Trump and Powell over the president’s demands for lower interest rates.

Watch the clips above via C-SPAN 3.

New: The Mediaite One-Sheet "Newsletter of Newsletters"
Your daily summary and analysis of what the many, many media newsletters are saying and reporting. Subscribe now!