Kevin Warsh does his job, not Trump's command
Fed Chair Kevin Warsh and the other 11 members of the central bank’s Federal Open Market Committee last week carried out their mission to control inflation by managing monetary policy and raised the key interest rate to 4%, even though President Donald Trump has been demanding that borrowing costs be cut. Actually, more than demanding, as Trump has been threatening to cut off trade with any…
Federal Reserve Chair Kevin Warsh, along with the other 11 members of the central bank's Federal Open Market Committee, took action to combat inflation by raising the key interest rate to 4%, despite President Donald Trump's calls for borrowing costs to be reduced. Trump's demand stemmed from his threat to cut off trade with any country experiencing a trade deficit if interest rates were not lowered, a move that experts deemed disastrous.
Upon learning of the Fed's decision, Trump tweeted on his Truth Social platform, urging interest rates to be set at 1% or lower.
However, it is reassuring to note that Warsh and the Federal Reserve are not heeding Trump's advice. Although Trump may have perceived him as a fellow ally (having replaced Jay Powell, whom Trump had appointed and later wished to prosecute), Warsh has remained steadfast in his commitment to his duty to manage the economy rather than bow to the whims of an unpredictable White House figure.
The Federal Reserve is intended to remain independent of the political branches of government and focus on the long-term stability of the nation's economic landscape.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Kevin Warsh does his job, not Trump's command koreatimes.co.kr
