Trump says Fed chair Warsh faces hostile board

President Donald Trump acknowledged that new Federal Reserve Chairman Kevin Warsh may face internal resistance from the central bank's board, a notable shift from his previous public pressure on monetary policy. Trump made the comments in a CNBC interview on Thursday, July 2, following a jobs report that showed U.S. hiring slowed sharply in June.

Trump stated that Warsh has a board that is "maybe a little bit hostile" and one that "wants to do the wrong thing." He added that while Warsh is a "great guy and a great pro," he has to do what he has to do. The remarks appeared to grant Warsh leeway on interest rates, a departure from Trump's months of hectoring Warsh's predecessor, Jerome Powell, to cut rates.

Warsh, who was confirmed by a narrow Senate vote on May 13 and sworn in around May 22, has adopted a markedly different public communication strategy than his recent predecessors. He has declined to offer forward guidance on interest rates or submit individual rate projections, arguing such guidance can make policymakers "prisoners of their own words." Instead, he has anchored his public comments to the Fed's 2% inflation target, a goal he reiterated on Wednesday, July 1,...