Trump Urges Warsh to Cut Rates Quickly; Powell Under Probe

President Donald Trump said he would be disappointed if Kevin Warsh, his nominee for Federal Reserve chair, is confirmed and does not cut interest rates as soon as next month. Trump has repeatedly pushed Federal Reserve officials for lower rates and framed a quick cut as a test for Warsh.

Trump pressed Warsh to act quickly after Senate confirmation and renewed scrutiny of renovation and construction costs tied to a new Federal Reserve building. He urged officials to investigate those expenses.

Jerome Powell, the current Fed chair, is the subject of a criminal investigation related to testimony before a Senate committee about renovation work on Federal Reserve properties. Powell described the probe as “unprecedented” and said he believed it was opened because Trump was angry the Fed had refused repeated requests to lower rates.

On the conflict in Iran, Trump said he had expected far greater market losses and much higher oil prices than occurred. “If you would have told me that oil is at 90 [dollars] as opposed to 200 I would be frankly surprised,” he said, and he noted that shipping routes had shifted and suppliers were finding alternative sources.

Recent economic data show higher fuel costs have affected consumer spending and inflation. The Commerce Department reported U.S. retail sales rose 1.7% in March after a 0.7% gain in February; those figures are seasonally adjusted but not adjusted for inflation. AAA reported the national average for regular gasoline at $4.02 per gallon, above $4 for the first time since 2022.

The Labor Department reported the Consumer Price Index rose 3.3% in March from a year earlier, up from 2.4% in February and the largest year-over-year increase since May 2024. On a monthly basis, prices rose 0.9%, the largest monthly increase in nearly four years. Core CPI, which excludes food and energy, rose 2.6% year over year, up from 2.5% in February.

The Iran conflict began on Feb. 28 and included a temporary closure of the Strait of Hormuz that cut off roughly one-fifth of global oil supply. Officials and economists cited that disruption and higher fuel costs as factors behind changes in spending and inflation.

The White House pressure on a potential Fed chair, the criminal inquiry into the current chair, and the recent retail and inflation readings coincide with ongoing Federal Reserve policy decisions. The Fed has not cut interest rates in 2026 and has so far maintained its current policy stance.