Trump says a rate hike isn’t completely up to Warsh, it’s up to the Board
- A rate hike is not completely up to Warsh
- He's got a board that' very political
- It's up to the board
- I think Warsh is great, I won't criticize him
Speaking in an interview with Punchbowl News, Trump said a potential rate hike is "not completely up to Warsh" adding that the Fed chair "has a board that's very political" and stressing that the decision ultimately rests with the broader committee. Trump reiterated his confidence in the Fed chair, saying "I think Warsh is great. I won't criticize him."
Although the Fed chair is the most influential voice within the Federal Reserve, interest rate decisions are determined by the FOMC on a majority vote basis rather than by the chair alone.
The voting committee consists of the seven members of the Board of Governors, the president of the New York Federal Reserve, and four of the remaining regional Fed presidents on a rotating basis. Each voting member casts an independent vote at every policy meeting, meaning the chair cannot unilaterally raise or lower interest rates if the majority of the committee disagrees.
As a result, even if Warsh was personally inclined toward keeping interest rates steady, he would still need sufficient support from other voting members for such a move to be approved. Trump is distancing Warsh from sole responsibility for any future rate increases while reinforcing his support for the Fed chair.
This article was written by Giuseppe Dellamotta at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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