Trump eases pressure on Fed Chairman Kevin Warsh as inflation tops 4%

U.S. President Donald Trump arrives with incoming Federal Reserve Chair Kevin Warsh for Warsh's swearing-in ceremony at the White House in Washington, D.C., U.S., May 22, 2026. Jonathan Ernst | Reuters With inflation topping 4% , the Trump administration is easing off its long-standing calls for the Federal Reserve to immediately cut interest rates . That is giving new Fed Chairman Kevin Warsh an extended political grace period as he deals with a challenging economic environment, but underscores the depth of the pushback he could face if the mercurial president changes his mind. President Donald Trump said as recently as Wednesday that he wants the Fed to cut rates. Meanwhile several of the president's top economic advisers have in recent interviews and writing stopped short of calling for near-term rate cuts, as they had before the Iran war sent some prices surging and Trump installed Warsh as the new Fed chair. What might look like division is really an indication that the Trump-Warsh relationship has shifted the political gravity of the Trump administration, a White House official said, speaking on condition of anonymity to describe behind-the-scenes conversations. "I wouldn't say it's necessarily a shift in policy, or how we're seeing the data," the official said. Rather, ​​"personnel is big for this president," the official said. Trump has "confidence and faith" in Warsh and so will let him make decisions that he didn't entrust to Jerome Powell , the prior chair.