President Donald Trump has been in frequent contact with Kevin Warsh, the newly appointed chair of the Federal Reserve, seeking advice on issues including the Iran war, according to multiple sources cited by the Wall Street Journal on August 5.
Reports indicate that Trump has called Warsh multiple times over several days, alternating between intense communication and periods of silence. During these calls, Trump sought Warsh's insights on various topics, including the impact of the Iran conflict and the rapid advancement of artificial intelligence on the economy.
However, it remains unclear whether Trump and Warsh discussed monetary policy, the Journal reported. A source noted that since Warsh's nomination was confirmed by the Senate, Trump has not broached the subject of interest rates with him.
Despite this, the frequency of calls between a president and a central bank chair, who is expected to maintain independence in monetary policy, is considered unusual. The Journal pointed out that in recent decades, meetings between presidents and Fed chairs have typically been formal to avoid the appearance of presidential interference in monetary policy.
Trump, who has previously advocated for interest rate cuts, has been highly critical of the Fed under former chair Jerome Powell. His communications with Warsh have raised concerns about the Fed's independence. Sources indicated that Warsh has often expressed a positive outlook on the U.S. economy during his conversations with Trump. He recently praised the strong growth in corporate investment at a public event.
On the other hand, the Journal suggested that Warsh's friendly approach toward Trump may be an effort to dispel the perception that the Fed is antagonistic toward the president. Sources noted that Trump has complimented Warsh's appearance after seeing him on television. Additionally, during last week's Federal Open Market Committee (FOMC) meeting, where a decision to maintain interest rates was anticipated, Trump defended Warsh, stating he knows Warsh is trying to do the "right thing," while also criticizing the Fed board, which includes Powell as a member.
Meanwhile, Democratic members of the Senate Banking Committee, which oversees the Fed, asked Warsh last month if he would disclose his contact records, including communications with Trump, similar to what Powell had done. Warsh responded that he would comply with the law but declined to answer questions about whether he had spoken with Trump. He stated, "The president has never attempted to influence the execution of monetary policy before I took office as chair, and even if he did, I would quietly fulfill my role."
* This article has been translated by AI.
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