--- title: "Trump no longer criticizes the Federal Reserve Chairman at a single point: pressure for interest rate cuts shifts to the entire board" type: "News" locale: "en" url: "https://longbridge.com/en/news/295234481.md" description: "Recently, Trump expressed his stance on interest rate policy, reiterating his preference for rate cuts but acknowledging that the decision is not solely in the hands of the Federal Reserve Chairman, but is made collectively by the Board. Compared to his previous sharp criticisms of his predecessor, his tone has noticeably softened, which the market interprets as a mild probe towards the current Chairman, Waller. In addition, Trump proposed the unconventional economic logic of \"good data = low interest rates,\" reflecting his political demand to lower borrowing costs to stimulate growth, raising market concerns about the changing relationship between the White House and the Federal Reserve" datetime: "2026-08-07T12:28:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295234481.md) - [en](https://longbridge.com/en/news/295234481.md) - [zh-HK](https://longbridge.com/zh-HK/news/295234481.md) --- # Trump no longer criticizes the Federal Reserve Chairman at a single point: pressure for interest rate cuts shifts to the entire board According to the Zhitong Finance APP, U.S. President Donald Trump recently reiterated his stance on interest rate policy, expressing a preference for lowering interest rates while acknowledging that this is not solely the decision of the Federal Reserve Chairman. Compared to his previous sharp criticisms of his predecessor, this tone has softened significantly, drawing market attention to the subtle changes in the relationship between the White House and the Federal Reserve. ## Shift from Attack to Defense on Federal Reserve Attitude In an interview on Friday (August 7), Trump was asked whether Federal Reserve Chairman Kevin Warsh should avoid raising interest rates before the midterm elections in November. He responded, "It depends to some extent on him, but it's not entirely up to him. And he has a very politicized board." He again specifically criticized some members of the Federal Reserve Board, including former Chairman Jerome Powell and current board member Lisa Cook, stating, "It's not entirely up to him; it's decided by a board." This statement contrasts sharply with Trump's previous fierce attacks on the Federal Reserve. Before Warsh was nominated, Trump frequently criticized former Chairman Powell for the slow pace of interest rate cuts and even publicly called for negative interest rates multiple times, breaking the White House's traditional practice of not commenting on central bank policy. His acknowledgment that "it's not solely the chairman's decision" is interpreted by the market as a mild probe towards Warsh rather than direct pressure. ## Unconventional Economic Logic: Good Data = Low Rates? Trump also stated in the interview that he hopes to "return to those days" — where positive economic data means lower interest rates, painting a picture that is entirely different from the usual relationship between the economy and monetary policy. "In the past, when you released impressive economic data, interest rates went down," he said. However, this logic contradicts the mainstream monetary policy framework. Typically, strong economic data often indicates rising inflationary pressures and overheating risks, leading central banks to prefer raising interest rates to smooth out cycles. Trump's "good data = low rates" statement reflects his political demand for lowering borrowing costs to stimulate growth rather than the traditional logic of inflation management. ## White House and Federal Reserve: Market Concerns Under Subtle Balance Recently, according to informed sources, Trump has been regularly communicating with Kevin Warsh since he took office as Federal Reserve Chairman, signaling Trump's attempt to exert greater influence over the central bank. The individuals who requested anonymity due to the private nature of the discussions indicated that since Warsh was confirmed by the Senate in May, the two have spoken multiple times, with Trump inquiring about Warsh's economic forecasts and views, but not pushing for any specific policy actions. One source stated that the calls are not on a regular schedule, while another indicated that the frequency of calls is not high. It remains unclear whether they have discussed monetary policy. Although the specific content of the calls is not clear, Trump has long called for significant interest rate cuts by the Federal Reserve. While past presidents have also had conversations and meetings with Federal Reserve Chairmen, such occurrences are extremely rare, and Trump's efforts to influence monetary policy represent one of the most forceful interventions in central bank decision-making in decades. Warsh's background also provides the market with room for speculation. As an economic advisor during the Bush administration and a former Federal Reserve board member, he is seen as a "Congressional candidate," with market expectations leaning towards a dovish policy stance. However, Trump's statement that "it's not entirely up to him" also suggests that there are checks and balances within the Federal Reserve Board — especially with Powell remaining as a board member and the presence of Biden-appointed officials like Cook, indicating that Warsh may not have complete control over the discourse when pushing for policy shifts ## Market Impact and Outlook Currently, the CME FedWatch tool shows that the market's expected probability of a rate hike in September has decreased from 67% last week to 55%. Although Trump's statement did not directly change the policy path, it further reinforced the market's perception that the White House leans towards a low-interest-rate environment. Meanwhile, the Federal Reserve's decision-making independence still faces potential political pressure, especially in the context of the upcoming midterm elections, where the political coloring of monetary policy may be difficult to avoid. For investors, the interaction between Trump and Walsh will become a variable to continuously track in the coming months—if their relationship shifts from "gentle probing" to "direct pressure," it may shake the market's confidence in the Federal Reserve's independence, leading to additional fluctuations in U.S. Treasury bonds and the dollar exchange rate ## Related News & Research - [No jobs for the next generation: Workers struggle in Trump’s economy](https://longbridge.com/en/news/295203951.md) - [Trump has called Warsh repeatedly since he became Fed chair](https://longbridge.com/en/news/295038015.md) - [Trump announces tariffs on key component for solar panels and semiconductors](https://longbridge.com/en/news/295144524.md) - [Trump declines to back Thune for another term as Senate GOP leader](https://longbridge.com/en/news/295233685.md) - [President Trump Prioritizes Deal with Iran Over Major Military Strike](https://longbridge.com/en/news/295067866.md)