Trump backs Fed chair Warsh, pushes for lower US interest rates
Synopsis
Trump publicly backed new Fed chair Kevin Warsh while simultaneously arguing the Fed should cut rates — not raise them — even after a blowout US jobs report. The remarks, made on NBC’s Meet the Press, set up a defining tension: a White House that equates growth with rate cuts versus a central bank that must weigh inflation risk independently.
Key Takeaways
Donald Trump backed new Federal Reserve Chair Kevin Warsh on 7 June , calling him ‘fantastic’ in an NBC Meet the Press interview.
Trump argued the Fed should lower interest rates , not raise them, despite a stronger-than-expected US jobs report.
He dismissed the inflation-growth link, stating: ‘Growth does not cause inflation.’ Trump tied lower rates to broader goals including military expansion and reducing government debt obligations.
Warsh , a former Fed Governor, is set to chair his first Federal Reserve policy meeting later in June.
US President Donald Trump on Sunday, 7 June expressed strong confidence in newly appointed Federal Reserve Chair Kevin Warsh, calling him “fantastic” and publicly arguing that the US central bank should cut interest rates rather than raise them — even as a stronger-than-expected jobs report stoked expectations of tighter monetary policy.
What Trump Said
Speaking in an exclusive interview on NBC’s Meet the Press, Trump said he did not intend to pressure Warsh ahead of the Fed chair’s first policy meeting later this month. “Kevin’s fantastic and I want him to do whatever he wants. I don’t wanna have a big influence on him,” Trump said.
Yet Trump made his own preference unmistakable. “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, adding that 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.”
The Jobs Report Context
Trump’s remarks followed the release of a US employment report that significantly exceeded market forecasts, a figure he repeatedly cited as evidence of a robust economy. “We had a great report. We’re doing great,” he said. Despite the strong data — which would conventionally signal upward pressure on rates — Trump dismissed the link between growth and inflation. “Growth is the greatest thing you can have and growth does not cause inflation,” he said.
Trump also flagged what he described as a structural shift in how markets interpret economic data. “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.”
Trump on Debt and Military Spending
The president also tied lower rates to his broader fiscal ambitions, including expanded defence outlays. “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, suggesting that cheaper borrowing costs would ease the government’s debt obligations and fund national priorities.
Who Is Kevin Warsh
Kevin Warsh, a former Federal Reserve Governor, has long been regarded as a leading Republican economic voice. As the newly installed Fed chair, he faces a complex policy environment: policymakers must weigh a resilient labour market against lingering inflation risks and broader uncertainty stemming from geopolitical tensions and shifting global economic conditions. Warsh’s first meeting as chair will be closely watched for any signal on the rate trajectory, particularly given the public pressure — however diplomatically framed — now on record from the White House.
With Trump publicly on the side of easing and markets pricing in the possibility of a hold or hike, the Fed’s next move will be among the most consequential monetary policy decisions of the year.
Point of View
Undercut his independence privately — is a familiar playbook. The distinction between ‘I want him to do whatever he wants’ and ‘there’s no reason to raise rates’ in the same breath is not subtle. What is notable is the timing: a blowout jobs report would ordinarily give a central bank cover to hold or tighten, yet Trump is pre-emptively arguing the opposite on national television. For Warsh, this is an early credibility test — markets will watch whether his first meeting reflects independent judgment or political accommodation. The Fed’s institutional standing, already under scrutiny, depends on the answer.
NationPress
24 Jul 2026
Frequently Asked Questions
What did Trump say about Federal Reserve chair Kevin Warsh?
Trump called Warsh ‘fantastic’ and said he wanted him to make his own monetary policy decisions, while simultaneously arguing that the Fed should lower interest rates rather than raise them. The remarks were made during an interview on NBC’s Meet the Press on 7 June.
Why is Trump pushing for lower interest rates now?
Trump argued that lower borrowing costs would accelerate economic growth, help manage government debt, and fund priorities such as military expansion. He also dismissed the conventional link between strong growth and inflation, saying ‘growth does not cause inflation.’
What was in the US jobs report Trump referenced?
The jobs report released ahead of Trump’s interview showed employment figures that significantly exceeded market expectations, which Trump cited as evidence of a robust US economy. Conventionally, such data would increase the likelihood of the Fed holding or raising rates.
When is Kevin Warsh’s first Federal Reserve meeting?
Warsh is set to chair his first Federal Reserve policy meeting later in June 2025. The meeting is being closely watched given the strong jobs data, inflation risks, and the public rate-cut preference expressed by the White House.
