Trump says the Federal Reserve is 'in theory' an 'independent body'

President Donald Trump said Wednesday that his pick to lead the Federal Reserve would not have received the job offer had he expressed a desire to raise interest rates.

And while he said he believes the central bank is “in theory” an “independent body,” Trump suggested the Fed should follow his lead because he thinks he knows the economy “better than almost anybody.”

Speaking with “NBC Nightly News” anchor Tom Llamas in an extensive interview, Trump said there was “not much” doubt in his mind that interest rates would soon be lowered. Pressed about how he could be so sure, he said: “I just think they’re going to be lowered. I mean, they should be lower.”

Tune in for more of Tom Llamas’ interview with President Donald Trump on Super Bowl Sunday on NBC.

“We’re way high, OK?” Trump said. “We’re way high in interest. We have now, with me and with all the money, I’m — I’ve always been good at money — and with all the money coming into our country, we’re a rich country again. We have debt, but we also have growth, and the growth will soon make the debt look very small.

“Because there’s — the greatest way — you have two ways,” Trump continued. “You can cut, cut, cut, and we do that anyway, and we did that. You know, we got rid of hundreds of thousands of federal workers. And those workers went out and got themselves jobs in the free enterprise system. And you know what? That’s called making America great again. We had 10 workers in the federal government for every single job. When the Democrats go in, they hire. I could right now give you the best employment numbers in history. You know what I do? Go out and hire 2 million people, put ’em in the federal government. I do the opposite.”

Llamas asked Trump whether Kevin Warsh, a former member of the Federal Reserve’s board of governors whom Trump tapped to be the central bank’s next chair, understands that he wants him to lower interest rates.

“I think he does, but I think he wants to anyway,” Trump said. “I mean, if he came in and said, ‘I want to raise them ...’

“If he said that, he wouldn’t have gotten the job?” Llamas interjected.

“He would not have gotten the job,” Trump responded. “No.”

Pressed about whether he believes the chairman of the Federal Reserve answers to the president or heads an independent body, Trump said: “Well, I mean, in theory it’s an independent body.”

“But I think, you know, I’m a smart guy,” he continued. “I know the economy better than almost everybody.”

Trump announced last week that he had officially nominated Warsh to succeed Jerome Powell, the current chair. Trump has chastised Powell for months for not making more aggressive rate cuts.

The Fed chair does not have unilateral control of the interest rates set by the central bank. They’re decided by the Federal Open Market Committee, which is made up of 12 members, with seven permanent governors and a rotating slate of four regional reserve bank presidents and the president of the New York Fed.

In January, the central bank kept interest rates steady after three consecutive months of cuts, with only two members in favor of a rate cut. Powell in recent months has defended the Fed’s direction, saying the decisions are based on where inflation and the labor market stand.

“Now, there’ll be times if I see inflation on the horizon. But we don’t have that,” Trump said. “We have low inf— remember, 1.2% inflation the last three months. We have low inflation, and we have tremendous growth. You haven’t had these numbers like, right? We have — think of it, low inflation, great growth. Now all I have to do is one thing, easy, get down the interest rates.”

The annual rate of inflation in December was 2.7%, according to the Bureau of Labor Statistics’ Consumer Price Index. Throughout the first year of Trump’s second term, the rate of inflation has ranged from 2.3% to 3%. It has fallen significantly from highs in 2022 during President Joe Biden’s term, though inflation had come down to similar levels during the final year of Trump’s first term.

Powell has also accused the White House of using an investigation to ramp up a pressure campaign to cut rates. Last month he said the Justice Department had subpoenaed the Fed with the threat of criminal indictment over renovations to Federal Reserve office buildings.

Llamas asked Trump about bipartisan suggestions that the criminal probe is retribution for Powell’s either not lowering interest rates more rapidly or for his disputing Trump’s assertions about the renovation at a public meeting between the two last year.

“He was very respectful to me,” Trump said. “He was explaining to me, I’m asking him, ‘Why are you spending almost $4 billion on a very small, little complex of buildings?’ It’s the highest price per square foot. He’s renovating buildings for $3-$4 billion.”

The total price tag for the renovations, set to be completed in 2027, is $2.5 billion, according to Fed documents. The renovations are not funded by U.S. taxpayers.

Llamas asked about senators, including Thom Tillis, R-N.C., who have said they will not approve Warsh’s nomination until the investigation is resolved.

“A lot of people say a lot of things,” he said. “The investigation is being handled by [Attorney General] Pam [Bondi] and [U.S. Attorney] Jeanine [Pirro] and the people. They’ll make their own decision.”