The recent interview of US President Donald Trump with Fox News has sparked confusion regarding his comment on the Federal Reserve (Fed) chair appointment. While some have interpreted it as a reference to Kevin Warsh, Trump himself clarified that the “mistake” he referred to was actually his decision to appoint Jerome Powell as Fed chair in his first term. In this blog post, we will delve into the context of the interview and provide further insights into the President’s remark.

During the interview, Trump stated, “My choice for the Fed chair was a mistake.” When asked by Fox News anchor Neil Cavuto to elaborate on his comment, Trump replied, “Well, I think it’s a mistake because he [Powell] doesn’t know how to handle the Fed. He’s not a businessman. He’s a Fed guy.” This response has led many to speculate that Trump was referring to Warsh, who served as a member of the Federal Reserve Board of Governors from 2006 to 2011 and was considered a potential candidate for the Fed chair position.

However, Powell’s appointment in 2018 has been a subject of controversy among some Trump supporters. They argue that Powell’s background as a lawyer and investment banker makes him unfit to lead the central bank. Moreover, they point out that Powell’s Fed tenure has seen a significant increase in the Fed’s balance sheet, which they believe is a result of his policies rather than any inherent flaw in his character.

While Trump’s comment on Powell’s appointment may have been interpreted as a swipe at his predecessor’s choice for the Fed chair position, it is important to note that the President’s remark was actually directed at his own decision to appoint Powell. Trump’s administration has faced criticism from both sides of the political aisle regarding its economic policies and the appointment of Powell has been no exception.