U.S. President Trump Says New Fed Chair Kevin Warsh 'Can Do What He Wants'
U.S. President Trump stated that Kevin Warsh "can do what he wants" and described him as a very talented individual, expressing confidence that Warsh will perform excellently.
This statement highlights Trump's full trust and support for Warsh.
In the market, bond traders and institutional investors adjusted their positions due to increased policy certainty. Trump's public support reinforces Warsh's authority, benefiting expectations for friendly policies, while traditional hawks face short-term pressure. Funds are shifting towards risk assets and growth sectors that reflect Warsh's preferences.
Source: Public Information
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Trump previously personally presided over Warsh's swearing-in at the White House, and this public statement continues his strong intervention style regarding Fed personnel, emphasizing Warsh's decision-making autonomy while hinting at expectations for policies that focus more on economic growth and asset prices.
On the capital path, Trump's public support provides Warsh with political cushioning, guiding the market to form expectations for a more flexible monetary policy, motivated by the goal of better aligning Fed policies with the "America First" economic objectives, creating a rapid transmission chain from personnel appointments to market pricing.
Similar to his mixed attitude towards Powell during his first term, Trump currently places Warsh in a key position for the Fed's transition from Powell's high-interest rate path to a growth-friendly adjustment.
Structural judgment: Essentially a regulatory change. The president's public statement strengthens influence over the Fed, with the mechanism being that after Warsh gains full trust, policy uncertainty decreases, forcing market pricing power to adjust from the traditional central bank independence framework towards administrative-economic coordination.
ABAB News · Cognitive Law
The stronger the presidential support, the greater the chair's autonomy.
Talent recognized, policy direction set.
Personnel decisions, market reacts first.