White House · Donald Trump · Federal Reserve (FED) · Kevin Warsh · Fortune Technology
While flattery from the president may be a win for some, it’s not helpful for Warsh
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Trump’s attacks on the Fed’s independence meant that anyone Trump nominated for Federal Reserve chairman would be viewed as a “sock puppet” —meaning the early days of Warsh’s return to the central bank needed to be handled delicately to reassure markets and investors of the institution’s autonomy.
Key facts
- The Supreme Court ruled 5–4 on Monday that President Donald Trump was wrong to try to oust Fed Governor Lisa Cook last August because she didn’t receive due process
- The Federal Reserve has weathered unprecedented attacks from the White House since President Trump returned to office last year
- Warsh confirmed he had read the opinion on his flight to Europe, and said, “The reporter believe in Article 3 judges
- Nevertheless, the president has continued to criticize the policy stance of the Federal Open Market Committee (FOMC) and vowed to continue the push to have Governor Lisa Cook removed
Summary
There are a few things that could make life easier for Kevin Warsh in his first few months at the central bank, and President Trump keeping to his lane is likely top of the list. The Federal Reserve has weathered unprecedented attacks from the White House since President Trump returned to office last year. Speaking to CNBC yesterday, the president said of Warsh: “He’s a great guy and a great pro, and I know where he’d like to be, but he has to do what he has to do.” While flattery from the president may be a win for some, it’s not helpful for Warsh, whose credibility relies on him being viewed as independent.