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President Trump has been calling Fed Chair Kevin Warsh — whom he installed in May…

2026-08-06 · 21:31 UTC ·@Microinteracti1 ·1 min read

Brief

Trump has been calling Fed Chair Kevin Warsh, whom he appointed in May 2026, several times a week about Iran, artificial intelligence and the economy; the White House insists the calls are 'never about rates.' Warsh says he isn't uncomfortable. The author warns historical parallels (Nixon/Arthur Burns, Erdoğan) and notes Warsh has held rates while hinting at hikes.

Why it matters

President Trump has been calling Fed Chair Kevin Warsh — whom he installed in May 2026 — several times a week to chat about Iran, artificial intelligence and the general health of the economy; the White House insists the calls are 'never about rates' (post published 2026-08-06).

Key details

  • Warsh says he 'doesn’t feel uncomfortable' taking the calls; the author draws historical parallels to Nixon leaning on Arthur Burns (preceding 1970s stagflation) and Erdoğan blaming high rates while presiding over the lira's collapse.
  • Warsh has so far held interest rates while 'mutter[ing] about raising them'; the post warns bond markets react poorly to politicians expressing strong views on the yield curve and compares the situation to the public backlash against Powell.
Source evidence

Trump has been ringing Kevin Warsh, the Fed chair he installed in May, for casual chats about Iran, artificial intelligence and the general health of the economy.

Never about rates, insists a White House that respects central bank independence so deeply it phones the central bank several times a week.

Warsh says he doesn’t feel uncomfortable taking the calls, which is exactly what a man who feels uncomfortable would say.

History is reassuring here. Nixon leaned on Arthur Burns for cheap money before an election and gifted America a decade of stagflation. Erdogan insisted that high rates cause inflation and turned the lira into confetti.

Bond markets adore a politician with strong opinions about the yield curve.

Warsh has so far held rates and muttered about raising them, which is the precise offence for which Powell was publicly flogged for two years. Enjoy the phone calls while they remain friendly.

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