US Federal Reserve chair Kevin Warsh has kept lines of communication with President Donald Trump open since taking the role, underscoring the central banker’s balancing act between markets and the White House.
Trump reportedly hasn’t pressured Warsh to lower interest rates, but sought his advice on the Iran war and AI, suggesting Warsh is “engaging Trump directly to head off the sense that the Fed is his adversary,” The Wall Street Journal wrote.
Warsh is also under pressure for pulling back on forward guidance, which drew bond market blowback at the Fed’s last meeting.
Trump has made clear his preference for lower rates, but his repeated praise of Warsh suggests he could be comfortable with an independent central bank helmed by “his guy.”