Economy January 30, 2026

Trump Says Asking Fed Nominee About Rate Cuts Would Be Inappropriate, Expresses Confidence in Cuts

President backs Kevin Warsh's inclination toward lower borrowing costs while flagging a potential Senate confirmation obstacle

By Avery Klein
Trump Says Asking Fed Nominee About Rate Cuts Would Be Inappropriate, Expresses Confidence in Cuts

President Donald Trump said it would be inappropriate to press his Federal Reserve nominee, Kevin Warsh, on whether he would cut interest rates, while expressing confidence that Warsh favors lowering borrowing costs. Trump played down concerns about the Senate confirmation process even as Republican Senator Thom Tillis vowed to block any Fed nomination until a Justice Department inquiry into current Fed Chair Jerome Powell is "fully and transparently resolved."

Key Points

  • President Trump said it would be inappropriate to ask Fed nominee Kevin Warsh whether he would cut interest rates, but expressed confidence Warsh favors rate reductions.
  • Senator Thom Tillis vowed to block any Fed nominee until a Justice Department inquiry into current Fed Chair Jerome Powell is "fully and transparently resolved," potentially delaying confirmation.
  • The Senate Banking Committee's 13-11 Republican majority means losing one GOP vote could stall the nomination before it reaches the full Senate, where Republicans have a three-vote majority.

President Donald Trump on Friday said it would be inappropriate to ask Kevin Warsh, his nominee for Federal Reserve chair, whether he would cut interest rates, while also saying he believed Warsh was inclined to lower borrowing costs.

Asked about the confirmation process and a related pledge by Senator Thom Tillis to block Fed nominees until an inquiry into current Fed Chair Jerome Powell is complete, Trump said he was not overly concerned.

On the Tillis pledge and confirmation prospects

Tillis, a North Carolina Republican who has said he will block confirmation until a Justice Department investigation or inquiry into Powell is "fully and transparently resolved," sits on the Senate Banking Committee, which handles Fed confirmations. Trump said he saw the statement and characterized it as obstructionist. "If he doesn’t approve, we just have to wait until somebody comes in that will approve it," he told reporters. "I saw that; he wants to be an obstructionist."

The Senate Banking Committee holds a narrow 13-11 Republican majority. Losing a single Republican vote could delay sending the nomination to the full Senate, where Republicans hold a slim three-vote majority.

On questions about rate policy

Trump said it would probably be inappropriate to press Warsh on his specific plans for interest rates, noting a desire to keep the process "nice and pure." At the same time, the president said Warsh had indicated support for cutting rates and suggested the nominee would move in that direction: "He’s going to want to do the same thing."

Political context noted in comments

The president downplayed the potential for the nominee's confirmation to be derailed by intra-party opposition, and emphasized his confidence in Warsh’s inclination on rates. The comments outlined the political and procedural dynamics that could affect the pace at which the nomination advances from the Banking Committee to the full Senate.


Direct quotations from the president

"If he doesn’t approve, we just have to wait until somebody comes in that will approve it," Trump told reporters. "I saw that; he wants to be an obstructionist."
"I want to keep it nice and pure"
"He’s going to want to do the same thing."

Risks

  • A single Republican defection in the Senate Banking Committee could delay or prevent Warsh's nomination from reaching the full Senate - affecting financial markets sensitive to Fed leadership uncertainty.
  • Tillis's pledge to block nominees until the Powell inquiry is resolved creates procedural uncertainty that could prolong the confirmation timeline and cloud rate expectations for markets and sectors tied to interest-rate outlooks.

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