Trump jokes about suing his new Fed chair pick over interest rates: 'He's going to lower them'
After picking Kevin Warsh as his nominee for the Federal Reserve chair, President Donald Trump joked that he might sue him if he fails to lower interest rates, in a speech to an elite group of political leaders on Saturday night, CNN reported, citing a source who attended the dinner. After the exclusive event at the Capitol Hill hotel, Trump clarified to reporters that whatever he said was a "roast" and "all comedy", while boarding Air Force One en route to Palm Beach.
Trump's appearance marked the first annual and exclusive Alfalfa Club dinner, which was attended by a bipartisan mix of political leaders, senior military officials, business executives, and diplomats. In an over an hour-long exposition, Trump made several quips at fellow political leaders and people in the room, some of which seemed to be mean, according to CNN's source. Coming to Washington, Trump threatened to sue him over the lowering of interest rates, assuming he would take office. However, later, after leaving the event, Trump told reporters, “Yes, it’s a roast," regarding the speech. "It was all comedy", the president added before claiming that his nominee, Warsh, a former Fed governor, would surely lower rates. “Oh, he’s going to lower them. … I hope he’s going to lower, but you know, he’s gonna have to do what he wants to do,” Trump said. “He’s a very high-quality person. He should have no trouble getting through," he stated.
While Trump's nomination received mixed reactions from leaders and Wall Street, many have questioned his pick amid his campaign to control the Fed's decisions. Trump's pick needs to be confirmed in the Senate, but it’s unclear whether Warsh will have enough support. Last month, the Department of Justice launched a criminal investigation into current Fed chair Jerome Powell over renovations at the Federal Reserve’s headquarters, and many representatives were outraged at the move. While Senator Thom Tillis, a North Carolina Republican, vowed to block the confirmation of any nominee until the investigation is "fully and transparently resolved," Trump told reporters that he wasn't too worried about the Senate confirmation process or the threat.
Trump's confidence in Warsh, a former Morgan Stanley banker who also served as an economic adviser to former President George W. Bush, is significantly high, as he told reporters. “I think he might get Democrat votes. He’s so good that he’ll probably get Democrat votes. He should. He’s very good. My choice. My Fed choice. He should get Democrat votes," The Hill reported.
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