President Donald Trump Just Threw Fed Chair Kevin Warsh Under the Bus, and Things Could Get Ugly for Wall Street
The public feud between President Trump and the central bank may be heating up.
President Donald Trump has publicly criticized Fed Chair Kevin Warsh, potentially causing trouble for Wall Street. For decades, most presidential terms have seen stock market growth, but Trump's two terms have generated higher-than-average returns. While Trump's Tax Cuts and Jobs Act lowered the corporate tax rate, benefiting Wall Street, some of his policies are causing inflation.
Fed Chair Warsh and the Federal Open Market Committee (FOMC) have raised interest rates in response to persistently high inflation. Trump has been vocal about his dislike for the Fed and its former head, Jerome Powell, but only recently criticized Warsh. Trump called for interest rates to be slashed to 1%, but his disagreements with the central bank could negatively impact the stock market.
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