Thursday, May 10, 2018

Fed Chairman Finalist Leaks His Oval Office Conversation With Trump

A new Politico podcast features Kevin Warsh, a former Fed governor who was on the final short list for the top job at the Fed. But he didn't get the position and is now letting it rip by providing the inside scoop on his Oval Office meeting with the President. His impression is that President Trump is obsessed with keeping interest rates low and that he will attempt to interfere with the Fed to keep rates low if he has to.

During the interview, Warsh said that Trump pressed him hard on whether he would keep rates low and did not appear to view the Fed as an independent entity he could not control.

“If you think it was a subject upon which he delicately danced around, then you’d be mistaken. It was certainly top of mind to the president … The president has a view about asset prices and stock markets. He has a view based on his long history in his prior life as a developer and real estate mogul of the role of interest rates," Warsh said. "In some sense the broader notion of an independent agency, that’s probably not an obvious feature to the president.”

-Robert Wenzel  

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