Close Menu
Truth Republican
  • Home
  • News
  • Politics
  • Business
  • Guns & Gear
  • Healthy Tips
  • Prepping & Survival
  • Videos
Facebook X (Twitter) Instagram
Truth Republican
  • Home
  • News
  • Politics
  • Business
  • Guns & Gear
  • Healthy Tips
  • Prepping & Survival
  • Videos
Newsletter
Truth Republican
You are at:Home»Business»Former Fed governor says Trump is right to be frustrated with Powell’s restrictive policies
Business

Former Fed governor says Trump is right to be frustrated with Powell’s restrictive policies

Buddy DoyleBy Buddy DoyleJuly 9, 2025No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp
Former Fed governor says Trump is right to be frustrated with Powell’s restrictive policies
Share
Facebook Twitter LinkedIn Pinterest Email

Former Federal Reserve Governor Kevin Warsh said the U.S. economy could grow tremendously, but “bad” policies by the Federal Reserve are keeping it from doing so.

Warsh told “Kudlow” host Larry Kudlow that he had “some sympathy” for President Donald Trump being frustrated with how Federal Reserve Chair Jerome Powell and the central bank have been handling interest rates.

“Economic growth in the U.S. is poised to boom, but it’s being held down by bad economic policies coming from the central bank, bad supervision policies, bad monetary policies, and a very confusing set of standards as we’ve gone from last year to this year,” the former Federal Reserve governor said.

Warsh told Kudlow that both interest rates and the Federal Reserve’s balance sheet should be lower than they are. 

FEDERAL RESERVE LEAVES KEY INTEREST RATE UNCHANGED FOR FOURTH STRAIGHT MEETING

The range of the Federal Reserve’s benchmark interest rate is currently 4.25% to 4.5%. 

“We used to say that interest rate policy is housing policy, but we’re in a housing recession right now,” Warsh argued. “First-time homebuyers are having a hard time getting a house. Thirty-year fixed-rate mortgages are closer to 7%.”

Cutting the Fed’s interest rates and bringing the yield curve down could position the economy for its “next degree of acceleration,” according to Warsh.

“That stronger economy will be good for corporate profits, and that will be good for financial markets,” he said.

“My simple version of this is: Run the printing press a little bit less. Let the balance sheet come down. Let Secretary Bessent handle the fiscal accounts, and in doing so, you can have materially lower interest rates,” Warsh posited. 

He also told Kudlow that he “talked frequently about the need for Fed reform” during his time at the central bank and said people at the Fed are “proving” a “regime change” is needed.

FED CHAIR POWELL CONFIRMS TARIFF CONCERNS PREVENTED INTEREST RATE CUTS SO FAR THIS YEAR

Warsh served on the Fed Board from 2006 to 2011. 

“Now, regime change means new sets of policies, new way of thinking about economic growth, new understanding of what really drives inflation,” he told Kudlow. “It also means new personnel.” 

Kevin Warsh Former Fed Board Governor

While the Fed has a “huge amount of talent,” it also has people “who need to adjust their thinking to a modern economy,” Warsh said, adding that inflation comes from “this growth of money” rather than high wages.

“Just to underscore the point, back in the ‘08 crisis, we cut rates to zero. We decided, because the economy was racing away from us, we’d create this new instrument called quantitative easing, and about every trillion dollars we grew the balance sheet, we thought was roughly worth about 50 basis points of cuts,” he said. “Well, if you look right now, and you could take down that balance sheet a couple trillion dollars over time in concert with the Treasury secretary, that’s a big rate cut could come, and what you would do then is turbo-charge the real economy, where things are somewhat tougher, and ultimately the financial markets would be fine.”

America’s central bank has chosen not to do rate cuts at its four most recent meetings, instead keeping the benchmark rate at its current level. 

The move has drawn the ire of Trump, who has repeatedly slammed Powell for not bringing it down and even called for him to step down.  

THE HAGUE, NETHERLANDS - JUNE 24: President of the United States Donald Trump arrives at Huis ten Bosch Palace for a dinner during the NATO Summit 2025 on June 24, 2025 in The Hague, Netherlands. (Photo by Patrick van Katwijk/Getty Images)

TRUMP DEMANDS ‘TERRIBLE’ FED CHAIR POWELL RESIGN IMMEDIATELY, CALLS FOR RATE CUTS

In June, after its meeting, FOMC policymakers released a summary of economic projections, known as the so-called “dot plot,” which showed members see two interest rate cuts in 2025, followed by one cut each in 2026 and 2027. 

Eric Revell contributed to this report. 

Read the full article here

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Previous ArticleTariff case pits Cato Institute against Trump over ‘unlimited’ executive power under emergency law
Next Article Top 10 Best Portable Camping Cot & Bed 2020

Related Articles

ETF investors take ‘man of steel’ view, inflows on pace for record year

ETF investors take ‘man of steel’ view, inflows on pace for record year

August 5, 2025
Grassley slams hold on 3 Trump Treasury nominees

Grassley slams hold on 3 Trump Treasury nominees

August 5, 2025
Why does the Labor Department revise jobs reports? Here are 3 reasons

Why does the Labor Department revise jobs reports? Here are 3 reasons

August 5, 2025
Northeast suburb beats out entire country for hottest housing market in 2025

Northeast suburb beats out entire country for hottest housing market in 2025

August 5, 2025
China closes gap in AI model development

China closes gap in AI model development

August 4, 2025
Trump to ‘substantially’ hike India tariffs, accuses country of fueling ‘Russian war machine’

Trump to ‘substantially’ hike India tariffs, accuses country of fueling ‘Russian war machine’

August 4, 2025
American Eagle stock jumps following Trump praise for Sydney Sweeney ad

American Eagle stock jumps following Trump praise for Sydney Sweeney ad

August 4, 2025
Trump’s F-47 next-gen fighter jet threatened by potential delays as Boeing workers go on strike

Trump’s F-47 next-gen fighter jet threatened by potential delays as Boeing workers go on strike

August 4, 2025
Social Security chief fires back at Warren over agency ‘mismanagement’ claims with performance data

Social Security chief fires back at Warren over agency ‘mismanagement’ claims with performance data

August 4, 2025
Don't Miss
ETF investors take ‘man of steel’ view, inflows on pace for record year

ETF investors take ‘man of steel’ view, inflows on pace for record year

9th ex-Biden aide appears before House Oversight investigators in autopen probe

9th ex-Biden aide appears before House Oversight investigators in autopen probe

Quadruple murder suspect spotted wielding rifle as police issue lockdown alert

Quadruple murder suspect spotted wielding rifle as police issue lockdown alert

Grassley slams hold on 3 Trump Treasury nominees

Grassley slams hold on 3 Trump Treasury nominees

Latest News
Getting ready to harvest your garden? Get these helpful tools

Getting ready to harvest your garden? Get these helpful tools

August 5, 2025
Viral RNA-Based Sprays For Plants Have Unknown Consequences

Viral RNA-Based Sprays For Plants Have Unknown Consequences

August 5, 2025
Why does the Labor Department revise jobs reports? Here are 3 reasons

Why does the Labor Department revise jobs reports? Here are 3 reasons

August 5, 2025
EXCLUSIVE: Leading cause of bankruptcy being addressed by new ‘Make America Healthy Again’ tool

EXCLUSIVE: Leading cause of bankruptcy being addressed by new ‘Make America Healthy Again’ tool

August 5, 2025
The Mamdani effect: Will far-left challenger top Dem incumbent mayor in Seattle’s primary?

The Mamdani effect: Will far-left challenger top Dem incumbent mayor in Seattle’s primary?

August 5, 2025
Copyright © 2025. Truth Republican. All rights reserved.
  • Privacy Policy
  • Terms of use
  • Contact

Type above and press Enter to search. Press Esc to cancel.