Trump eases pressure on Fed Chairman Kevin Warsh as inflation tops 4%

With inflation topping 4%, the Trump administration is easing off its long-standing calls for the Federal Reserve to immediately cut interest rates. That is giving new Fed Chairman Kevin Warsh an extended political grace period as he deals with a challenging economic environment, but underscores the depth of the pushback he could face if the mercurial president changes his mind.

President Donald Trump said as recently as Wednesday that he wants the Fed to cut rates. Meanwhile several of the president's top economic advisors have in recent interviews and writing stopped short of calling for near-term rate cuts, as they had before the Iran war sent some prices surging and Trump installed Warsh as the new Fed chairman.

What might look like division is really an indication that the Trump-Warsh relationship has shifted the political gravity of the Trump administration, a White House official said, speaking on condition of anonymity to describe behind-the-scenes conversations.

"I wouldn't say it's necessarily a shift in policy, or how we're seeing the data," the official said. Rather, ​​"personnel is big for this president," the official said. Trump has "confidence and faith" in Warsh

Fuente original: CNBC Top News (https://www.cnbc.com/2026/06/26/trump-warsh-fed-rate-cuts-inflation.html)