Trump says his Fed pick Warsh 'certainly wants to cut rates'

WASHINGTON

US President Donald Trump said on Friday that asking his Federal Reserve nominee Kevin Warsh about cutting interest rates would be "inappropriate," but expressed confidence that he favors reducing borrowing costs.

Speaking to reporters at the White House, Trump was asked whether Warsh had promised to push for rate cuts if confirmed.

"No, but we talk about it I've been following him. I don't want to ask him that question. I think it's inappropriate, probably. Probably would be allowed, but I want to keep it nice and pure, but he certainly wants to cut rates. I've been watching him for a long time," Trump replied.

Trump has picked former Federal Reserve governor Warsh as his nominee for the next Fed chair to replace Jerome Powell, whose term expires in May.

The president praised Warsh as “very smart, very good, strong, young” and described him as the “perfect candidate” for the Fed, saying he loves the country and would do a “great job.”

Asked about potential challenges in the Senate confirmation process, including objections from Republican Sen. Thom Tillis, Trump downplayed any concern.

"That kind of thinking is why he is no longer a senator ... if he doesn't approve, we'll just have to wait tili somebody comes that will approve it, right? So that's it," he said.

US Senate Minority Leader Chuck Schumer has urged Republicans to halt nomination of Warsh if the president continues attacks against the central bank and current chair Powell.

"If Donald Trump won't drop his vendetta against the Fed, weaponizing the Justice Department to go after Powell and Cook, Republicans must not move Mr. Warsh's nomination forward," Schumer said on the Senate floor.

He claimed Trump is "trying to cannibalize" the Federal Reserve to eliminate its independence.

The nomination follows Trump’s sustained criticism of Powell, whom he repeatedly attacked as the Fed kept interest rates steady last year before cutting them at three meetings later in the year.

Trump has repeatedly said he would appoint a Fed chair who favors lower interest rates.