U.S. President Donald Trump claimed that Federal Reserve (Fed) Chair Kevin Warsh is in a situation where it is difficult to push through the interest rate policy he wants because of opposition from Fed governors.
Trump said in a CNBC interview on the 2nd (local time), "Chair Warsh is dealing with a somewhat hostile board," adding, "Unfortunately, it seems the board wants to go in the wrong direction."
He added, "Warsh is a great person and an outstanding professional," and "I know what he wants to do, but for now he has to do what he needs to do."
Trump has publicly pressured former Fed Chair Jerome Powell, calling for interest rate cuts. This time, however, rather than criticizing Chair Warsh personally, he took issue with opposition from the Fed's board, placing responsibility on the board for the interest rate policy not proceeding as he wishes.
Chair Warsh has repeatedly said that the independence of the Central Bank is important when deciding currency policy.
Trump's remarks came right after U.S. nonfarm payrolls in June rose by only 57,000, far below the market forecast of 115,000. After the jobs report, expectations spread in the market that the Fed is less likely to raise rates further this year.
The hiring slowdown is also weighing on Trump as he seeks to highlight economic performance ahead of the November midterm elections.
Trump also criticized the Fed for focusing excessively on prices. He said, "The Fed is almost phobic about inflation," arguing, "Economic growth does not necessarily fuel prices and can instead have positive effects."
He went on, "In the past, when good economic indicators came out, the stock market rose, but now it moves in the opposite direction," adding, "It looks like the Fed is blocking economic growth and success on its own."
Trump also reaffirmed his plan to dismiss Fed Governor Lisa Cook. He said, "The Supreme Court merely remanded the case on procedural grounds," adding, "We will restart the process and push ahead with the dismissal."