U.S. President Donald Trump said Kevin Warsh, a former Federal Reserve governor he nominated as his pick for the next Federal Reserve (Fed) chair, would cut the benchmark interest rate. However, he said there was no promise to push for a rate cut.
At an executive order signing at the White House on the 30th local time, when asked by reporters, "Did Warsh promise to push for a rate cut if he is confirmed (by Congress)?" Trump answered, "No." He added, "We did talk about rate cuts," and said, "I don't want to ask Warsh that question. In my view, it would be inappropriate and not permitted." He added, "I want it to be kept kind and pure."
The comments were interpreted to mean that obtaining a promise to push for rate cuts during a meeting with a Fed chair nominee would be inappropriate in terms of maintaining independence. Trump said, "Warsh clearly wants rate cuts," adding, "I've watched him for a long time."
Asked whether he had concerns about Warsh's hawkish record of advocating rate hikes in the past, Trump said, "There was a time when I also thought rate hikes were necessary. Warsh is very smart, excellent, tough and quite young. He'll do well."
Asked whether he was concerned about Warsh's Senate confirmation in the Senate Banking Committee, he answered, "No." Of Warsh, Trump said, "He was the right person people wanted, the perfect candidate," adding, "Top student at the best schools, everything is perfect. He has everything. He will do an excellent job and he loves this country."
Republican Sen. Thom Tillis of North Carolina has said he would oppose all Fed nominees until "the Ministry of Justice's investigation" into current Fed Chair Jerome Powell is resolved. In response, Trump said, "Because of that way of thinking, he is no longer a senator," adding, "If he won't confirm, we'll have to wait until someone comes who will."
The U.S. military is moving a large fleet, including an aircraft carrier strike group, to the Middle East to pressure Iran into agreeing to a ban on nuclear weapons. When asked by reporters about a deadline for this, Trump said, "Only Iran knows for sure," adding, "I can say, 'They want a deal.'"
On holding a peace talks between Russia and Ukraine without the United States on the 1st of next month, he said, "They may be able to seize a (peace) opportunity," but added that the situation is very difficult because the leaders of the two countries hate each other. He added, "I think we are getting very close to a (peace) deal."