Trump’s Secret Call Stuns White House Goons

Key Points:

• President Donald Trump surprised his closest advisers with a secret phone call to Federal Reserve Chair Kevin Warsh, defending Warsh amid the first interest rate hike in three years, despite previously criticizing the Fed under Jerome Powell.
• Trump accused the Federal Open Market Committee of being politically motivated and hostile towards him, claiming the interest rates are too high and are being raised to harm his administration, while Warsh and the committee unanimously voted to increase rates citing persistent inflation.
• Warsh declined to comment on his conversation with Trump and defended the Fed’s independence, emphasizing that monetary policy and trade/fiscal policy should remain separate.
• White House officials expressed anxiety about Trump’s reaction to the rate hike, with some fearing backlash if rates rise again before the midterm elections; senior counselor Peter Navarro criticized Warsh’s decision, warning it risks recession and citing historical precedents where previous Fed chairs held rates steady during energy shocks.
• Warsh, a former Fed governor and Trump’s pick to replace Powell, has a background in government service and finance, but faces scrutiny over his youth and perceived inexperience, as well as connections to influential Republican donors through his family.