President Donald Trump on Friday said it would be inappropriate to ask Kevin Warsh, his nominee for Federal Reserve chair, whether he would cut interest rates, while also saying he believed Warsh was inclined to lower borrowing costs.
Asked about the confirmation process and a related pledge by Senator Thom Tillis to block Fed nominees until an inquiry into current Fed Chair Jerome Powell is complete, Trump said he was not overly concerned.
On the Tillis pledge and confirmation prospects
Tillis, a North Carolina Republican who has said he will block confirmation until a Justice Department investigation or inquiry into Powell is "fully and transparently resolved," sits on the Senate Banking Committee, which handles Fed confirmations. Trump said he saw the statement and characterized it as obstructionist. "If he doesn’t approve, we just have to wait until somebody comes in that will approve it," he told reporters. "I saw that; he wants to be an obstructionist."
The Senate Banking Committee holds a narrow 13-11 Republican majority. Losing a single Republican vote could delay sending the nomination to the full Senate, where Republicans hold a slim three-vote majority.
On questions about rate policy
Trump said it would probably be inappropriate to press Warsh on his specific plans for interest rates, noting a desire to keep the process "nice and pure." At the same time, the president said Warsh had indicated support for cutting rates and suggested the nominee would move in that direction: "He’s going to want to do the same thing."
Political context noted in comments
The president downplayed the potential for the nominee's confirmation to be derailed by intra-party opposition, and emphasized his confidence in Warsh’s inclination on rates. The comments outlined the political and procedural dynamics that could affect the pace at which the nomination advances from the Banking Committee to the full Senate.
Direct quotations from the president
"If he doesn’t approve, we just have to wait until somebody comes in that will approve it," Trump told reporters. "I saw that; he wants to be an obstructionist."
"I want to keep it nice and pure"
"He’s going to want to do the same thing."