Opinion: Warsh should publicly resist Trump's pressure on the Federal Reserve and uphold the central bank's independence.
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Trump hinted that Warsh was having a difficult time at the Federal Reserve and continued his attempts to get rid of the "troublemaker."
PANews reported on July 3 that, according to Jinshi News, following the release of the latest US jobs report, US President Trump refused to advise Federal Reserve Chairman Warsh in an interview, stating that the new chairman "must do what he has to do." Trump said, "Wash has a council that is perhaps a little hostile, and unfortunately, that council may want to do the wrong things." Trump also stated that he will continue to push for the dismissal of Federal Reserve Governor Cook by "winning the lawsuit." Trump has long favored lowering interest rates.
Trump stated that Warsh "must do what he has to do" and will continue to push for the dismissal of Federal Reserve Governor Cook.
According to Mars Finance, on July 3rd, following the release of the US June non-farm payroll report last night, US President Trump gave an interview and refused to offer advice to Federal Reserve Chairman Warsh, stating that the new chairman "must do what he has to do." Trump indicated that Warsh has a potentially hostile board, and unfortunately, this board may be trying to do the wrong things. Trump also stated that he will continue to push for the dismissal of Federal Reserve Governor Cook by "winning the lawsuit."
Warsh appoints Samantha Schwab, a senior aide to Bessant, as an advisor to the Federal Reserve.
Odaily Odaily reports that Federal Reserve Chairman Warsh is expanding his advisory team, with the latest appointment including Samantha Schwab, a senior aide to Treasury Secretary Bessenter, joining the Fed as an advisor. Schwab has served as Bessenter's deputy chief of staff at the Treasury Department since January 2025 and previously served in the White House during Trump's first presidential term. Schwab comes from a financial family and is the granddaughter of Charles Schwab, founder of Charles Schwab's firm. The specific date for her appointment has not yet been determined. This appointment has sparked discussions about a closer relationship between the Fed and the Treasury, especially given Warsh's weekly meetings with Bessenter, raising concerns about whether the central bank's independence will be affected.
Federal Reserve Chairman Kevin Warsh declined to comment, reiterating that the 2% inflation target remains unchanged.
On July 1, Federal Reserve Chairman Kevin Warsh stated at the 2026 European Central Bank Forum that the US economy has solid demand and strong supply, and this is before the results of AI become apparent. When pressed on whether he was a hawk, he declined to comment, but reiterated his stance: while inflation expectations and risks have recently subsided, anyone who thinks the central bank will tolerate inflation above 2% will be disappointed—the Fed will definitely deliver on price stability.
Trump: Process to remove Federal Reserve Governor Cook will begin
According to ChainCatcher, citing Jinshi News, US President Trump stated that he will begin the process of "removing" Federal Reserve Governor Cook from the Federal Reserve.
Bloomberg ETF analyst: US stocks are "too big to fail," and the Federal Reserve may purchase stock ETFs to rescue the market.
PANews reported on July 7th that Eric Balchunas, senior ETF analyst at Bloomberg, released research stating that the US stock market is gradually becoming a de facto "retirement fund" for Americans. With approximately 55% of Americans holding stocks and the "Trump Accounts" program expected to add about 28 million new investors, the link between the stock market and household wealth, pensions, and social stability is becoming increasingly close. He believes that in the next major bear market, the Federal Reserve is highly likely to purchase stock ETFs for the first time to stabilize the market, similar to its purchase of corporate bond ETFs in 2020, and the actions of the central banks of Japan and China. Balchunas believes that future political pressure will make a prolonged bear market increasingly intolerable, and the continued inflow of funds into ETFs on dips and investors' widespread expectation of government intervention also reflect this trend.