Trump's Attitude Shift on Fed Chair: No Rate Cut, No Blame for Warsh

Odaily News: Trump has completely changed his attitude toward the Fed chair. He once blasted Powell for not cutting rates, but now even as rate hikes loom, he has shown rare tolerance toward Warsh. When asked whether Fed Chair Warsh should pause rate hikes before the November midterm elections, Trump displayed a milder tone than in the past. He acknowledged that the ultimate direction of rate adjustments is not determined solely by the Fed chair.

In the interview, Trump directed his pressure squarely at the Federal Reserve Board. "It depends a little bit on him, but not entirely. He's dealing with a very political board," Trump said directly. He added that the decision-making power lies with the entire board, reiterating his long-standing criticism of former Chair Powell and board members like Cook.

Before Warsh was officially confirmed in May this year, Trump frequently attacked Powell for being too slow in cutting rates. Now, his tolerance for the current chair has increased significantly. Sources familiar with Warsh's thinking revealed that if inflation data released in the coming weeks remains hot and market expectations for higher borrowing costs intensify further, Warsh will be prepared to raise rates without hesitation at the September meeting.