Trump Warsh calls: president says one brief conversation, disputes repeated-contact reports
Trump said he spoke briefly with Fed Chair Kevin Warsh once in recent days, contradicting anonymous-source reports of multiple calls.
By Theo Nakamura · Staff Writer
· 3 min read
President Donald Trump said the Trump Warsh calls amounted to one brief conversation a few days ago, disputing reports that he had been in repeated contact with Federal Reserve Chair Kevin Warsh. The difference matters because Congress has given the Fed operational independence to make monetary-policy decisions using longer-term, data-based analysis, according to the central bank.
Trump told reporters Monday that he had spoken with Warsh “one time, briefly, a few days ago,” CNBC reported. He rejected the suggestion that the two men were speaking repeatedly or constantly, saying, “I spoke to him one time.”
That is at odds with Bloomberg reporting published Aug. 6, which cited unnamed people familiar with the private conversations. Those people said Trump and Warsh had spoken multiple times by phone since Warsh became Fed chair in May. One person characterized the contacts as irregular and another described them as infrequent, Bloomberg reported.
The available accounts leave key details unresolved. Bloomberg said it was unclear whether Trump and Warsh discussed monetary policy, and CNBC said the Fed did not immediately respond to its request for comment Monday. The Fed had also declined to comment on Bloomberg’s earlier report.
What did Trump say about his calls with Kevin Warsh?
Trump confirmed one recent, brief conversation while denying that the contacts were repeated. Bloomberg’s account, based on anonymous sources, said there had been multiple calls since May but described them as irregular or infrequent rather than routine.
The White House said in a statement reported by Bloomberg that Trump has given Warsh room to lead Fed decision-making and has reaffirmed the independence of both Warsh and the central bank. Warsh told lawmakers last month that he did not want to disclose his conversations with the president and described himself as independent, Bloomberg reported.
Why contact with the Fed chair draws attention
The Federal Reserve says Congress set its monetary-policy goals, including maximum employment and stable prices, while also providing the institution operational independence. The Fed says that arrangement is intended to let policy decisions reflect objective analysis and longer-term considerations.
Interest-rate decisions are made through the Federal Open Market Committee, or FOMC, rather than by the chair acting alone. The Fed identifies the federal funds rate, the overnight rate banks pay to borrow from one another, as its main monetary-policy tool. Changes to that rate influence broader financial conditions, according to the central bank.
Trump has publicly called for lower interest rates, CNBC reported. He also said Monday that Warsh has latitude to reach his own decisions, noting that the Fed chair works with a board. Whether either the recent call Trump acknowledged or the contacts described by Bloomberg involved rates remains unknown.
This story draws on original reporting from CNBC.
