Trump Respects Fed Chair Warsh's Judgment Amid Hawkish Rate Outlook

President Donald Trump expressed respect for new Federal Reserve Chair Kevin Warsh's judgment on monetary policy, a notable shift from his past criticism of the central bank. Trump's comments came after the Fed's first policy meeting under Warsh on June 17, 2026, where the central bank held interest rates steady but signaled a hawkish bias, with half of officials projecting a rate hike this year. When asked about a potential rate increase, Trump, speaking from the G7 summit in France, stated, "It's possible... This is very hard to believe. Raising rates would only drag the country down." However, he quickly added, "But now there's a very good person there, so I will respect his judgment." Warsh, who took office in May, declined to comment on future rate paths or confirm discussions with Trump, but confirmed regular meetings with Treasury Secretary Scott Bessent.