U.S. President Donald Trump said the future head of the Federal Reserve should consult with him on interest rate decisions, arguing that presidential involvement in monetary discussions was once standard practice.
Possible Candidates for Fed Leadership
Speaking to U.S. media, Trump said former Federal Reserve Governor Kevin Warsh and White House National Economic Council Director Kevin Hassett are being considered for the role. He indicated that Warsh is currently his preferred candidate.
Trump noted that Warsh supports lowering interest rates and added that other economic advisers he has spoken with share similar views.
Trump: I Should Be Listened To
Trump emphasized that while the Fed chair should remain independent, communication with the president should not be ignored.
“This doesn’t mean they have to do exactly what I say,” Trump said. “But I’m a smart voice, and I should be listened to.”
He added that consultation between the Fed and the White House used to be common and should become routine again.
Interest Rates and National Debt
Trump argued that lowering interest rates would help reduce the financial burden of the United States’ nearly $30 trillion national debt. He said the U.S. should aim to have the lowest interest rates in the world.
Trump’s Rate Target
Asked what level he would like interest rates to reach next year, Trump said he would prefer rates around 1 percent or even lower.
