Trump Backs Warsh, Reiterates Call for Lower Interest Rates Amid Strong Economy

President Donald Trump expressed his support for new Federal Reserve Chair Kevin Warsh but reiterated his opposition to raising interest rates, arguing that borrowing costs should be lowered instead. Speaking on NBC News' 'Meet the Press,' Trump praised Warsh as 'fantastic' and said he wants him to make decisions without interference from the White House.

Trump emphasized that strong economic performance does not justify higher borrowing costs, citing the recent US employment report which showed 172,000 jobs added in May, with the unemployment rate holding steady at 4.3%. The President argued that financial markets react negatively to strong economic reports because investors believe the Fed could respond with tighter monetary policy.

Trump has frequently criticized the Federal Reserve's approach to monetary policy, urging them to lower rates during Jerome Powell's tenure as Fed chair and publicly attacking Powell over the pace of policy adjustments. This stance is consistent with Trump's earlier statements on the matter, where he suggested that Warsh would not have been selected if he advocated raising interest rates.

The President's comments come after Goldman Sachs pushed back its forecast for future Federal Reserve rate cuts following the stronger-than-expected May jobs report. The bank cited continued labor-market strength and inflation concerns linked to geopolitical developments and higher oil prices.