Trump Gearing Up to Take Aim at Fed Chair Kevin Warsh

The Federal Reserve under Chairman Kevin Warsh has acquitted itself well in the face of pressure from the White House, but an economic analyst warns that 'the signs are ominous' that President Donald Trump will turn on his appointee. Since Trump elevated Warsh to the job, a widening rift between the president and the Fed chair has been apparent.

Warsh presided over a unanimous decision to raise interest rates for the first time in three years, a direct rebuff to Trump's demands for cuts. This move was particularly notable given that it came just weeks before elections that will determine whether Republicans retain control of Congress. The rate hike was seen as resolute, especially considering the veiled threat from White House economic adviser Kevin Hassett that 'if you want an independent Fed, then one thing the Fed does is it stays out of the way of elections.'

Trump did not take the rate hike quietly. He went ballistic on social media and insisted borrowing costs should sit at 1 percent or lower because the country carries the best credit in the world. Despite inflation running above the Federal Reserve's target for years and a federal deficit on pace to top $2 trillion, Trump demanded that rates be slashed fast.

Porter also noted signs of tension between Warsh's restraint and the rest of the administration, including sweeping tariffs and a push by Treasury Secretary Scott Bessent to force long-term rates down even as the Fed lifts them. He warned that 'more clown cars are likely on the way.'