- - Trump jokes about suing Fed chair nominee Kevin Warsh

Andrea Riquier, USA TODAYFebruary 1, 2026 at 8:27 PM

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Just one day after announcing his nomination for the next chair of the Federal Reserve, President Donald Trump joked that he might sue that person if he did not lower interest rates, according to multiple news reports.

The joke was made at a dinner that included what many reports characterized as a "bipartisan" audience, and included officials from politics, business and the military. Asked about the joke later, Trump told reporters that the dinner had been a "roast," and that he does expect his nominee, Kevin Warsh, to lower rates.

But the joke comes at a tense time for the central bank, which has been in Trump’s crosshairs since he was sworn in for a second term in January 2025.

A 2017 file photo of Kevin Warsh, President Donald Trump's nominee for Federal Reserve chair.

Trump’s White House has brought criminal charges against current chair Jerome Powell and attempted to fire one governor, Lisa Cook. In January, Cook’s case reached the Supreme Court, where justices seemed skeptical about the president’s arguments. And Powell took the unconventional step of recording a video presentation in which he said the criminal charges – related to cost overruns on a construction project – were an excuse.

"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions – or whether instead monetary policy will be directed by political pressure or intimidation," Powell said.

How powerful is a Fed chair? What to know ahead of Trump's nomination

The central bank is an independent agency, and leading economists, analysts, political figures and former Fed officials have warned that Trump’s efforts to influence its policies, including by targeting members, are dangerous.

What's more, many professional economists and investors have noted that Warsh, a former Fed governor, may not be as docile as Trump expects. Multiple sources previously told USA TODAY that one of Warsh's primary concerns is taming inflation. The Federal Reserve's main tool for accomplishing that is by managing – raising, not lowering – interest rates.

Some economists are concerned that inflation may flare up again this year, thanks in part to the tax cuts passed into law in 2025.

This article originally appeared on USA TODAY: Trump jokes about suing Kevin Warsh, his Fed chair nominee

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