Trump Spares Warsh from Interest Rate Criticism Despite Fed Hike
President Donald Trump has surprisingly given Federal Reserve Chairman Kevin Warsh a pass after the central bank voted unanimously to raise interest rates. Unlike his predecessor Jerome Powell, who was heavily criticized by Trump for not cutting rates, Warsh has received no direct attacks from the president. The decision to raise interest rates came as the yield on the 10-year Treasury touched its highest level since 2007, near the start of the financial crisis and Great Recession.
The situation is significant given concerns about the independence of the Fed. Trump's decision not to attack Warsh may be seen as a sign that he is exercising self-restraint, perhaps due to bond market pressures. Ryan Young, a senior economist at the Competitive Enterprise Institute, suggested this as a possibility.