Trump says Fed chair should 'do whatever he wants,' criticizes rate hikes

US President Donald Trump on Sunday praised newly appointed Federal Reserve Chairman Kevin Warsh and endorsed his autonomy in monetary policy, while warning that any rate increase would unfairly penalize economic progress.

Trump Endorses Fed Chair Autonomy

Speaking during an interview on NBC News' Meet the Press, Trump said Warsh — who was sworn in last month to lead the central bank — has his full support to chart his own course on monetary policy. "Kevin is fantastic, and I want him to do whatever he wants," the president said, adding that he does not wish to exert influence over the Fed chair's decisions. Asked whether he would be angry if the Federal Reserve raised rates, Trump said he has "a lot of respect for" Warsh, but reiterated that "there's no reason to raise interest rates" and emphasized that he does not want to "kill success" through tighter monetary policy.

Warnings Against Rate Increases

The president's remarks followed the release of May employment data showing the US economy added 172,000 jobs while the unemployment rate held steady, figures that under standard economic theory strengthen the case for raising rates to prevent overheating and control inflation. Trump dismissed such reasoning, saying it is "unfair that whenever you do great, they want to raise interest rates" and arguing that higher borrowing costs would amount to penalizing the country's progress. He said that raising rates tries to "kill success," noting that markets often decline on positive economic news because investors anticipate tighter policy, and stating that "nowadays when you have good reports, the market goes down because they think they're going to raise interest rates."

History of Fed Relations

Trump has repeatedly urged lower rates during his presidency, previously mocking former Fed Chair Jerome Powell as "too late" and "a major loser." Earlier this year, he told NBC News that he would not have selected Warsh had the nominee indicated plans to tighten monetary policy, describing the Fed as "in theory" an "independent body" while asserting that he knows "the economy better than almost everybody." Critics have accused the president of attempting to bully the central bank through threats of firing Powell and launching politically motivated investigations. Despite these accusations, Trump maintained on Sunday that Warsh retains his confidence to manage monetary policy according to his own judgment. The remarks came as oil and gas prices have climbed since the war with Iran began, intensifying inflationary pressures that the Fed might seek to counter through tighter policy, though Trump predicted that following his prescription would yield "a beautiful, well-oiled machine like you've never seen before."