Trump Backs Off Rate Pressure as White House Tones Down Fed Criticism

U.S. President Donald Trump has softened his tone on interest rate policy, adopting a less confrontational approach in recent comments. This shift comes after he was criticized for putting pressure on the Federal Reserve to cut rates.

In an interview, Trump stated that rate cuts 'depend to some extent' on Fed Chair Kevin Warsh but not entirely. He also expressed his desire to return to the past when strong economic data led to lower interest rates.

White House National Economic Council Director Kevin Hassett moved to defuse the situation by emphasizing that Trump respects the independence of the Federal Reserve and would never pressure the Fed on rate decisions.

Hassett revealed that Trump and Warsh have a close personal relationship, frequently discussing economic issues. He also stated that Trump is confident in Warsh's ability to make data-driven decisions without partisan politics.