Kevin Warsh-Donald Trump conversation: Report raises concerns over Federal Reserve independence; POTUS speaks out
President Donald Trump has confirmed that he recently spoke with Federal Reserve Chair Kevin Warsh. The president, however, dismissed reports that suggested the two have been in regular contact since Warsh took over the central bank in May.
A Wall Street Journal report claimed that the conversations had been frequent. Trump contradicted the report and denied the claims by saying they spoke only once.
The report raised concerns over Federal Reserve independence. Previously, Trump has repeatedly urged the central bank to lower interest rates while insisting that the final decision rests with Warsh and the Fed’s governing board.
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What did Trump say about the conversation?
The Wall Street Journal had earlier reported that Trump and Warsh had spoken repeatedly since Warsh became Fed chair in May.
On Monday, while speaking to reporters, Trump acknowledged that he had recently spoken with Warsh. However, he strongly disputed claims that the conversations were frequent.
He said, “I spoke to him one time, briefly, a few days ago, just a conversation. They made it sound like I live and breathe, you know, I speak to Kevin all the time, every time.”
“I spoke to him one time,” the president added.
Trump did not provide additional details about the discussion.
During the conference, Trump also reiterated his belief that interest rates should be lower while insisting that the Fed chair remains free to make independent decisions.
“I know what he’d like to do, but he has to run it. He’s got a board,” Trump said. “If it was up to him, it would be different, but he’s got a board.”
Trump also emphasized that he supports Warsh. “I am behind Kevin 100%,” he said, while again noting his preference for lower borrowing costs.
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What do we know about conversations between Warsh and Trump?
Direct communication between a sitting president and the Federal Reserve chair is uncommon because Congress designed the central bank to operate independently of political pressure.
Warsh has previously stated that he welcomes hearing views from the president or anyone else but makes monetary policy decisions independently.
CNBC noted that Trump had only one regularly scheduled meeting with former Fed Chair Jerome Powell after returning to office in 2025. The two also toured a Federal Reserve renovation site following Trump’s criticism of the project.
Since then, Trump has repeatedly urged the central bank to cut interest rates.
The Wall Street Journal report has revived comparisons with the 1970s, when President Richard Nixon maintained a close relationship with then-Fed Chair Arthur Burns before a period of high inflation. CNBC cited that historical example, explaining why Fed independence remains closely watched.
Bloomberg also reported that Trump’s latest comments differ from remarks made by Hassett, who suggested the president and Warsh discuss economic issues frequently. Other officials familiar with the matter, however, described the conversations as irregular rather than routine.
Warsh’s publicly released calendar for June also showed three meetings with Treasury Secretary Scott Bessent. Such meetings are part of a longstanding practice between Treasury secretaries and Federal Reserve leaders.
