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Trump says new Fed Chair Kevin Warsh can set interest rates independently

economy-finance · 2026-05-19

President Donald Trump stated that incoming Federal Reserve Chair Kevin Warsh will have full autonomy to set interest rates as he sees fit. This marks a shift from Trump's previous months-long campaign pressuring outgoing Chair Jerome Powell to cut rates. The remarks suggest a potential change in the administration's approach to monetary policy independence.

Key facts

  • Trump says he will let new Fed Chair Kevin Warsh 'do what he wants' on interest rates
  • The statement follows Trump's months-long pressure campaign on outgoing Fed Chair Jerome Powell to cut rates
  • Kevin Warsh is the incoming Federal Reserve Chair
  • Jerome Powell is the outgoing Federal Reserve Chair

Entities

Institutions

  • Federal Reserve

Sources