Trump Shifts From Critic to Ally With New Fed Chair

Donald Trump's relationship with his predecessor at the Federal Reserve, Jerome Powell, was often contentious. The two had public disagreements over interest rates, with Trump frequently criticizing Powell in person and on social media.

However, since Powell stepped down as chairman in May and was replaced by Kevin Warsh, the dynamic has shifted significantly. According to a report by the Wall Street Journal, Trump has 'spoken repeatedly' with Warsh, and their conversations have been described as cordial.

Warsh has reportedly sought the advice of Trump on various matters, including the impact of the war in Iran and the rise of artificial intelligence on the economy. The president has also praised Warsh's looks, telling reporters that he is 'fantastic' but must navigate a board with 'very political' members.

Trump's change in tone towards Warsh has been seen as a positive development by some, who note that it could indicate a more collaborative approach to monetary policy. However, others have expressed skepticism, pointing out that Trump's past behavior suggests he may ultimately turn on Warsh if he doesn't get what he wants.