Trump: If Walsh dares to raise interest rates, he won't be nominated; he knows I want to lower interest rates

U.S. President Trump publicly stated that if his Federal Reserve Chair nominee, Waller, expresses a desire to raise interest rates, he will not be nominated at all. This statement has once again raised concerns in the market about the independence of the Federal Reserve and may become a focal point in Waller's Senate confirmation hearing.

Trump clearly pointed out in an interview with NBC News on Wednesday, "If he comes in and says 'I want to raise interest rates,' he won't get the job, no." Trump emphasized that the Federal Reserve should lower interest rates "without a doubt," because "our rates are too high," and now "we are a wealthy country again."

When asked whether Waller understands that Trump wants him to lower the benchmark interest rate, Trump responded, "I think he understands, but I think he wanted to do that anyway." This statement directly reveals the White House's clear expectations regarding the direction of monetary policy.

Trump's public pressure may intensify market skepticism about the Federal Reserve's policy independence and add variables to the upcoming personnel confirmation process.

Confirmation Process Faces Resistance

Waller's nomination confirmation process is expected to face strict scrutiny, with the independence of the Federal Reserve likely to become a core issue.

Republican Senator Thom Tillis, a member of the Senate Banking Committee, has pledged to block all of Trump's Federal Reserve nominees until the Department of Justice concludes its investigation into the Federal Reserve's renovation project.

Outgoing Federal Reserve Chair Powell previously described this investigation as a veiled attack on the Federal Reserve's ability to independently decide monetary policy. Trump administration officials deny this intent, but the president himself has launched a months-long campaign pressuring Powell to lower interest rates.

Waller's Shift in Position

Waller previously served as a Federal Reserve governor and was known for his hawkish stance, but he has recently expressed support for lowering interest rates.

This former Federal Reserve official built a reputation as an anti-inflation hawk during his tenure, but his latest public statements indicate a shift in his policy stance, aligning more closely with Trump's call for lower interest rates.

Trump's statement effectively confirms the direct link between nomination decisions and monetary policy preferences, which is relatively rare in the history of the Federal Reserve and may set a new precedent for the future independence of central banks.

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