A clip showing US President Donald Trump discussing his pick for the Federal Reserve Chair has gone viral on social media, with him supposedly saying that he made a "big mistake". Some netizens have linked the statement to the recent announcement of Kevin Warsh as Jerome Powell's successor, but that is not the case.
The actual context of the viral clip from Fox Bussiness' Kudlow Show on Feb. 9 showed Trump reflecting on his decision to pick the Fed chief in 2017, during the first term of his presidency. At the time, he said, picking Powell over Warsh was a "really big mistake", with the latter having been the runner-up choice.
Trump stated that he had picked Powell due to the advice of Treasury Secretary Steven Mnuchin on the matter. Trump instead praised Warsh, calling him a "high quality person" and stated that he had the capacity to bring extraordinary results if he took the Fed Chair position.
Trump further made a notable claim saying that if Warsh "does the job that he is capable of", the US economy could grow upwards to 15%. To put this claim into context, the prediction exceeds the historical highs of 4-7% growth that it had experienced in its stronger years.
The statement has also spurred debate, discourse and speculation on whether Warsh was being set up as a scapegoat if these claims remain unproven.
Analysts and crypto observers have taken these statements as a sign of lower interest rates and more liquidity under the leadership of the administration of the new Fed Chair. The prevailing sentiment among posts from observers on social media indicate that Warsh would ease conditions, keep borrowing costs down, step in and keep interest rates from rising and coordinate with the Treasury to support the economy.
Trump has a storied history regarding his disapproval of Fed Chair Jerome Powell, often disagreeing with his decision on interest rates, and arguing that they should be much lower.
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