Trump Reiterates Backing Of New Fed Chair Kevin Warsh But Still Pushes For Lower Interest Rates

President Donald Trump said he wants Federal Reserve Chair Kevin Warsh to “do whatever he wants” but still reiterated his opposition to any potential increase in U.S. interest rates, arguing that borrowing costs should be lowered instead as the economy continues to add jobs and face higher energy prices.

Speaking during an interview on NBC News’ “Meet the Press,” Trump praised Warsh but made clear that he disagrees with the idea of raising rates following recent economic data.

“Kevin is fantastic, and I want him to do whatever he wants,” Trump said during the interview. Trump added that he did not want to exert significant influence over the new Fed chief but argued that strong economic performance should not lead to higher borrowing costs, according to NBC News.

The comments came after the latest U.S. employment report showed the labor market remained resilient. The U.S. economy added 172,000 jobs in May while the unemployment rate held steady at 4.3%, according to data released by the U.S. Bureau of Labor Statistics. Job gains were concentrated in leisure and hospitality, local government and health care. Bureau of Labor Statistics data showed employment in financial activities declined during the month.

Trump argued that financial markets increasingly react negatively to strong economic reports because investors believe the Federal Reserve could respond with tighter monetary policy. He said there was “no reason” to raise rates and maintained that lower borrowing costs would better support economic growth, the NBC News said.

Trump has frequently criticized the Federal Reserve’s approach to monetary policy. During Jerome Powell’s tenure as Fed chair, Trump repeatedly urged the central bank to lower rates and publicly attacked Powell over the pace of policy adjustments. Powell previously defended the Fed’s independence, saying interest-rate decisions are based on policymakers’ assessment of economic conditions rather than political preferences.

The stronger-than-expected May jobs report has also influenced market expectations about the direction of monetary policy. Following the release of the employment data, investors reassessed the likelihood of future rate changes. Axios reported that major stock indexes declined after the report as traders weighed the possibility that a resilient labor market could reduce pressure on the Federal Reserve to lower rates.

Separately, Reuters reported that Goldman Sachs pushed back its forecast for future Federal Reserve rate cuts after the May employment figures exceeded expectations. The bank cited continued labor-market strength and inflation concerns linked to geopolitical developments and higher oil prices.

Earlier this year, Trump signaled his preference for a Fed leader who supports lower rates. During a previous interview with NBC News, he suggested that Warsh would not have been selected to lead the central bank if he had advocated raising interest rates.

Asked whether he would be upset if the Federal Reserve ultimately decided to raise rates, Trump again praised Warsh while reiterating his view that lower borrowing costs would better serve the economy.

“If we do what I’m saying, this will be a beautiful, well-oiled machine like you’ve never seen before,” Trump said.