Washington: US President Donald Trump on Sunday expressed confidence in newly appointed Federal Reserve Chair Kevin Warsh on Sunday, saying he was “fantastic” and should make his own decisions on monetary policy, while arguing that the US Central bank should lower interest rates rather than raise them despite a stronger-than-expected jobs report.
In an exclusive interview with NBC’s Meet the Press, Trump said he did not intend to pressure Warsh as he prepares to chair his first Federal Reserve meeting later this month.
“So I’m of a different feeling. I think Kevin is, so, Kevin’s fantastic and I want him to do whatever he wants. I don’t wanna have a big influence on him,” he added.
The remarks came after the release of a jobs report that Trump repeatedly cited as evidence of a robust US economy.
“We had a great report. We’re doing great,” he said.
When asked whether the Federal Reserve might be forced to raise interest rates after employment figures significantly exceeded expectations, Trump argued the opposite.
“There’s no reason to raise interest rates. The country becomes great. We built the country by doing great and having rates low,” he said.
Trump suggested that markets now react negatively to strong economic data because investors anticipate tighter monetary policy.
“You know, if you go back 15 or 20 years, when you had good reports, the market went up. Nowadays, when you have good reports, the market goes down because they think they’re gonna raise interest rates,” he said.
“What they do is when they raise interest rates, they try and kill success. I don’t want to kill success.”
The US President said lower borrowing costs would help accelerate economic growth.
“I would like to see rates get lower because we could build this into the greatest machine that the world has ever seen,” he added.
Trump also dismissed concerns that rapid economic expansion necessarily fuels inflation.
“Growth is the greatest thing you can have and growth does not cause inflation,” he said.
Pressed on whether he would be upset if the Federal Reserve raised rates, Trump reiterated his confidence in Warsh while making his own preference clear.
“Living with Kevin, I have a lot of respect for him, but my feeling is that when a country is doing well, they shouldn’t be penalised by immediately raising interest rates. They should actually be incentivised,” he said.
Trump added that lower rates would help the government address debt obligations and support broader national priorities.
“I want to go bigger in the military. I really do. If we do what I’m saying, this will be a beautiful, well-oiled machine like you’ve never seen before,” he said.
Warsh, a former Federal Reserve Governor, has long been regarded as a leading Republican economic voice.
As Fed chair, he will oversee policy decisions at a time when policymakers are balancing strong labour market data against inflation risks and broader uncertainty linked to geopolitical tensions and global economic conditions.
(IANS)
