Trump Allies Increasingly Publicly Criticize Federal Reserve and Biden Governance

WASHINGTON (AP) – Former Trump administration officials are intensifying their public criticism of the Federal Reserve’s monetary policy and, by extension, the Biden administration’s economic approach. This surge in commentary from figures like kevin Warsh and Kevin Hassett comes as Donald Trump actively campaigns for a return to the presidency, frequently voicing his own dissatisfaction with current economic conditions and interest rate levels.

Kevin Hassett

Kevin Hassett, who served as Chairman of the Council of Economic Advisers during Trump’s first term, recently stated on CNBC that resistance to Trump’s policies existed within the U.S. government throughout his presidency. Hassett, a Ph.D. economist from the University of Pennsylvania, previously worked at the American Enterprise Institute, a conservative think tank, before joining the White House in 2017. His tenure at the CEA concluded in 2019 with a public farewell from Trump, who described him as a “true friend” and praised his “great job.”

Following his initial departure, Hassett became a fellow at the Hoover Institution, located at Stanford University in Stanford, California. He later rejoined the administration to assist with the economic response to the COVID-19 pandemic, specifically advising on issues related to unemployment claims which peaked at 26.5 million in early April 2020. hassett’s current research at Hoover focuses on tax policy and economic growth.

kevin Warsh

Kevin Warsh,a former Governor of the Federal reserve System who served from 2006 to 2011,is also a fellow at the Hoover Institution. He has publicly advocated for lowering interest rates, aligning with a key policy objective of Trump’s. Warsh’s tenure at the Fed coincided with the 2008 financial crisis and the subsequent implementation of quantitative easing policies.

In a recent appearance on Fox News’ “Sunday Morning Futures” last month, Warsh expressed support for Trump’s criticisms of current Fed Chair Jerome Powell. He further elaborated on CNBC in July, calling for notable reforms to the Federal Reserve’s operating procedures and a renegotiation of the relationship between the Treasury Department and the Fed, referencing the 1951 accord that granted the Fed operational independence. He specifically criticized the Fed’s initial response to inflation following the pandemic, arguing their “hesitancy to cut rates” was a significant error.

Warsh argued that the fed’s handling of inflation necessitates a “regime change in the conduct of policy.” Trump himself publicly acknowledged Warsh’s expertise in June, stating he is “very highly thought of.” Warsh holds a J.D. from Yale Law School and a B.A. from Harvard University.

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Associated Press writers Josh Boak and Christopher Rugaber in Washington contributed to this report.