Federal Reserve Chair Kevin Warsh has held multiple undisclosed phone calls with President Trump since his May 2026 confirmation, Bloomberg and the Wall Street Journal report. The contact surfaces as Warsh's stripped-back communication style fuels a Treasury sell-off and revives questions about the Fed's independence from the White House.
President Trump has held multiple undisclosed phone calls with Federal Reserve Chair Kevin Warsh since Warsh's confirmation in May 2026, with Bloomberg confirming a scoop first reported by the Wall Street Journal on Thursday. Whether the two have directly discussed monetary policy remains unconfirmed by either outlet.
Reports diverge on the contact's meaning
The two outlets agree on the basic facts but frame them differently. The Wall Street Journal reported that Trump sought Warsh's views on topics including the economic impact of the Iran war and the rise of artificial intelligence, and that Warsh often gave the president a positive picture of the economy. Bloomberg's sources, by contrast, said Trump has inquired about Warsh's forecasts and opinions but has not pushed him toward any specific course of action. According to Bloomberg: "the most forceful intervention in the central bank's policymaking in decades".
White House confirms contact, Fed stays silent
White House spokesman Kush Desai did not dispute the calls, saying Trump has given Warsh the space needed to restore confidence in Fed decision-making, while reaffirming the Fed's independence; the Fed declined to comment. Bloomberg noted that Warsh's predecessor, Jerome Powell, disclosed in May 2025 that he had not discussed his monetary policy outlook with Trump, a transparency step Warsh has not matched.
At a July 15 Senate Banking Committee hearing, Warsh sidestepped a question about contact with Trump, though he said a call from the president did not make him uncomfortable. People close to Warsh separately said he acknowledged mistakes in his first ten weeks as chair, including failing to reinforce his messages on price stability.
Bond selloff sharpens the independence debate
Warsh's July 29 press conference set off the scrutiny: the Fed held rates steady on a 9-3 vote, triggering a bond market sell-off that pushed 30-year Treasury yields to roughly 5.2%, their highest level in about 19 years. Markets are now pricing a September rate hike as roughly a coin flip.
Kansas City Fed President Jeff Schmid has called for tighter policy against inflation he called too high, while Philadelphia Fed President Anna Paulson said she is keeping an open mind and Governor Lisa Cook said she is open to raising rates if price pressure does not ease. July ISM Non-Manufacturing Prices surged to 70.3, well above the 65.0 forecast, even as July ADP employment came in at just 44,000, sharply below the 68,000 consensus.
Friday's July nonfarm payrolls report is the next critical input for the rate debate. July CPI, due August 12, is the more consequential release given the prior year-over-year reading of 3.5%, well above the Fed's 2% target.
Sources: Investing.com, Financial Times
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