Donald Trump says he will not pressure new Fed chief Kevin Warsh

U.S. President Donald Trump told NBC News that he will not try to influence the decisions of the newly appointed Federal Reserve chair Kevin Warsh. While affirming the Fed’s independence, Trump urged that interest rates be lowered, stating, “There’s no reason to raise interest rates,” and argued that the strong labor market should allow cuts.

He added that high inflation, which he linked to the Iran war, and rising gasoline prices could worsen if rates stay high. Economists, however, say a rate hike remains possible given the persistent inflationary pressures.