Trump Says Fed Chairman Kevin Walsh Faces a “Hostile” Board; Weak Nonfarm Payrolls May Come as a Surprise or Provide Greater Policy Flexibility for Rate Cuts

According to the latest report from Bloomberg, U.S. President Donald Trump said in an interview with CNBC on Thursday that Federal Reserve Chairman Kevin Walsh faces a board that is “possibly a bit hostile” as he pushes forward with the monetary policy he favors.

Trump said bluntly: “He’s facing a board that may be a little bit hostile, you know, unfortunately, there may be a board that wants to do the wrong thing.” The remarks highlight the potential resistance Walsh may face in the Fed’s internal decision-making.

Despite this, Trump still gave Walsh a high level of praise, calling him “a great guy” and “a great professional.”

When asked whether the June employment report would give Walsh greater flexibility on rate cuts, Trump said: “I know where he wants to get to, but he has to do what he has to do.”

Trump also said he would continue to push for the dismissal of Fed governor Cook by “winning the lawsuit.” Although the U.S. Supreme Court previously allowed Cook to continue serving while the case is being heard, Trump said the court’s ruling involved only procedural issues, and that his administration would continue to move forward with the relevant dismissal steps.

Looking back, Trump previously, during the Powell era, repeatedly pressured the Fed to cut rates to stimulate economic growth.

But his cautious remarks this time appear to leave some room for Walsh on interest-rate policy, while also reflecting the White House’s complex understanding of the Fed’s independent decision-making.

#特朗普 # Federal Reserve Board