The Washington Post, citing sources familiar with the matter, reported on the 5th that US President Donald Trump has spoken with Federal Reserve Chair Kevin Warsh multiple times since he took office. This practice maintains a direct channel of communication between the president and the Fed chair, a departure from recent traditions.
According to the sources, the calls between Trump and Warsh are characterized by a sporadic pattern. There are periods when they are in contact several days in a row, followed by longer stretches without any communication. Some individuals familiar with the discussions indicated that Trump has sought Warsh's advice on a range of topics, including the war in Iran and the impact of the rapid development of artificial intelligence on the US economy.
The report notes that it remains unclear whether Trump and Warsh have discussed monetary policy. One person who is aware of the nature of their conversations stated that since Warsh's Senate confirmation, Trump has never brought up the topic of interest rates. The Federal Reserve and the White House have not yet responded to these reports.
Warsh has been in his role as Fed Chair for less than three months. On January 30, Trump announced his nomination of Kevin Warsh, a former Fed governor, to be the next chair of the Federal Reserve. Warsh was sworn in as the chairman of the US Federal Reserve on May 22 at a ceremony at the White House.
It is noteworthy that Trump had repeatedly criticized former Fed Chair Jerome Powell. Trump has consistently pushed for the Fed to cut interest rates in an effort to boost the economy and lower government borrowing costs. Frustrated by the Fed's lack of aggressive rate cuts, Trump had called for Powell's resignation on multiple occasions.
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