Trump Says Kevin Warsh to Lead Fed, Respect Central Bank Independence
Summary
- President Donald Trump said Kevin Warsh will lead the Federal Reserve (Fed).
- Trump said he would respect the Fed’s independence and that the central bank would make its own decisions.
- Markets are focused on the possibility of changes to the Fed’s benchmark interest-rate policy and balance-sheet management under Warsh.
Forecast Trend Report by Period
President Donald Trump said Kevin Warsh will lead the Federal Reserve and pledged to respect the central bank’s independence.
Walter Bloomberg reported on May 22 that Trump, speaking at a White House event, said Warsh would lead the Fed starting that day and voiced hope that he would do "a great job independently."
Trump also said the Fed would make its own decisions. The comment marked a shift in tone from his recent public pressure on the central bank over interest-rate policy.
Warsh served as a Fed governor from 2006 to 2011. He participated in the response to the global financial crisis and has been viewed as one of the Republican Party’s leading monetary policy figures.
Markets are watching for possible changes in the Fed’s benchmark interest-rate policy and balance-sheet management under Warsh. Because Trump has repeatedly called for rate cuts, any shift in the central bank’s policy stance is seen as a key variable.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
