Trump reaches out repeatedly to new Fed chair Warsh, prompting fresh autonomy worries

The president has made multiple direct calls to Kevin Warsh seeking input on Iran, artificial intelligence, and broader economic topics, prompting fresh debate over the central bank's separation from politics.

US President Donald Trump has contacted the Federal Reserve chairman numerous times in recent months, departing from long-standing norms intended to shield central bankers from political influence, the Wall Street Journal reported.

Sources close to the matter describe the outreach as occurring in irregular bursts, with several calls sometimes placed in a single week and then none for extended stretches.

While it remains unclear if monetary policy was addressed directly, the president has sought counsel on politically charged subjects such as the economic effects of the conflict with Iran and advances in artificial intelligence.

Warsh assumed the role just over two months ago, succeeding former chair Jerome Powell in May.

Presidents have held occasional meetings with Federal Reserve leaders over the years, yet recent practice has favored scheduled, formal sessions to prevent any appearance of influence over interest rate decisions.

Trump often bypasses official channels and places calls to leaders and executives using his personal cellphone, in contrast to the more restrained approach taken by Barack Obama and Bill Clinton toward the Federal Reserve.

Federal Reserve chairs are appointed to 14-year terms precisely to span multiple administrations and sustain public trust in economic stability.

The 1951 Post-Accord agreement and the Federal Reserve Act both emphasize the need to keep presidential actions separate from monetary policy decisions.

Trump's ties with Warsh renew questions on Fed independence

During Warsh's swearing-in earlier this year, Trump publicly expressed a desire for the chair to remain totally independent, yet he now views Warsh as a trusted economic adviser, according to sources.

Do not look at me or anyone else, he said at the time, urging the chair to follow his own judgment and perform effectively.

This stance marks a shift from December remarks in which Trump described himself as a smart voice that should be heeded and suggested the Fed should consult him regularly.

Last Wednesday the president again praised Warsh as a brilliant guy, even though the chair has not moved to implement the rate reductions Trump has sought.

In a press conference after the Fed left rates unchanged, Warsh signaled a possible preference for raising rates amid rising inflation, a position at odds with the president's preferences.

The disagreement echoes earlier tensions with Powell, whom Trump repeatedly criticized for insufficient rate cuts and even threatened to dismiss, despite legal limits allowing removal only for neglect of duty rather than policy differences.