A strange thing may happen in the coming days. Federal Reserve Chair Kevin Warsh may do exactly what his predecessor Jerome Powell had done about interest rates — only to get a completely different response from President Donald Trump.
Trump’s unexpected comments Wednesday on the latest inflation figure may give Warsh some space on interest rates.
“I love the inflation,” he said in the Oval Office hours after the Bureau of Labor Statistics revealed that annualized inflation jumped by 4.2%. If the president is unconcerned with the highest inflation in three years, that may buy Warsh a reprieve from expectations to quickly lower interest rates.
The president spent years railing against and trying to undermine Powell for what Trump saw as a stubborn refusal to cut interest rates faster and deeper than the Fed was willing to go. But now that Warsh has been confirmed as chair, and faces his first rate-setting Fed meeting next week, Trump is starting to send signals that he won’t object if Warsh doesn’t cut right away.
Link: https://www.cnbc.com/2026/06/10/trump-inflation-fed-chair-kevin-warsh-analysis.html