WASHINGTON — President Trump has maintained regular direct contact with Federal Reserve Chair Kevin Warsh since Warsh took office less than three months ago, a departure from the more formal communications that have characterized relations between the White House and the central bank in recent decades, a new report states.
Citing people familiar with the matter, The Wall Street Journal reported that Trump has spoken with Warsh repeatedly, sometimes calling several times over the course of a few days before going weeks without contact.
According to the report, Trump has sought Warsh’s views on a variety of economic issues, including the impact of the war in Iran and the rapid advancement of artificial intelligence on the U.S. economy.
With credit unions joining others in watching for any signals on the direction of rates, the report said it remains unclear whether the two have discussed monetary policy. The Wall Street Journal reported that a person familiar with the conversations said Trump has not raised the subject of interest rates since Warsh was confirmed by the Senate.
Not Unusual, But…
According to The Wall Street Journal, it is not unusual for presidents and Federal Reserve chairs to meet or speak periodically. However, such interactions have generally been carefully scheduled and conducted through formal channels to avoid creating the perception that the White House is attempting to influence interest-rate decisions.
The publication noted that Trump has often bypassed traditional communications protocols, relying instead on his personal cellphone to maintain direct contact with world leaders, corporate executives and lawmakers.
