Trump harasses new Fed chair Warsh with personal calls to unprecedented levels, sparking concern

U.S. President Donald Trump has reportedly engaged in frequent, informal calls with Federal Reserve Chair Kevin Warsh, raising concerns about the central bank's political independence. According to sources familiar with the matter, Trump has sought Warsh's advice on a range of sensitive topics, including the war with Iran and the economic implications of artificial intelligence, sometimes making multiple calls within a single week.

Warsh, who began his tenure as Fed chair in May, is intended to operate independently, a principle reinforced by the 14-year terms designed to allow chairmen to outlast any single presidential administration. Historically, interactions between presidents and Fed chairs have been formal and pre-arranged to avoid any appearance of undue influence on monetary policy. However, Trump has a pattern of circumventing traditional communication methods, often contacting world leaders and executives directly from his personal cellphone.

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Don’t look at me, don’t look at anybody. Just do your own thing and do a great job.

This pattern of communication revives long-standing concerns about the separation of presidential influence and Federal Reserve policy, a principle dating back to the 1951 Post-Accord precedent and codified in the Federal Reserve Act. While Trump publicly stated at Warsh's swearing-in ceremony that he wanted the chairman to be "totally independent," his recent actions suggest a different approach. He now reportedly views Warsh as a valued economic adviser, a shift from his earlier public statements where he asserted his own views should be considered by the Fed.

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He now sees Warsh as a valued economic adviser, sources say.