Trump Reportedly Calls Rate Questions On Fed Nominee Kevin Warsh ‘Inappropriate’

• Republican Senator Thom Tillis, a North Carolina Republican, vowed to block the confirmation of any Federal Reserve nominee until a Justice Department investigation of the current Fed chair, Jerome Powell, is resolved.
• President Donald Trump on Friday nominated Kevin Warsh as the next Federal Reserve Chair.
• Trump pointed out that Warsh had said he favored rate cuts. 

U.S. President Donald Trump has reportedly said that it would be inappropriate to ask Kevin Warsh, his nominee to be the next chair of the Federal Reserve, whether he would cut interest rates. 

Trump said it would probably be inappropriate to ask Warsh about his specific plans for interest rates, adding, "I want to keep it nice and pure". But he said Warsh had said he favored rate cuts, adding, "He's going to want to do the same thing,” according to a report from Reuters. 

Not Worried About Senate Confirmation

Trump told reporters that he was not worried about the Senate confirmation process for Warsh, as per Reuters. 

Earlier in the day, Republican Senator Thom Tillis, a North Carolina Republican, vowed to block the confirmation of any Federal Reserve nominee until a Justice Department investigation of the current Fed chair, Jerome Powell, is "fully and transparently resolved."

"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."

Warsh Nomination

President Donald Trump on Friday nominated Kevin Warsh as the next Federal Reserve Chair.

“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best. On top of everything else, he is “central casting,” and he will never let you down,” he said.

Warsh, a former Fed governor, is seen as a policy hawk with close ties to Wall Street. In addition to his experience at the central bank, the 55-year-old has served as the Fed’s emissary to emerging and advanced economies in Asia.

U.S. equities declined in Friday’s pre-market trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down by 0.41%, the Invesco QQQ Trust ETF (QQQ) fell 1%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.54%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.
 

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