U.S. President Donald Trump has repeatedly criticized Federal Reserve Chairman Jerome Powell for refusing to lower interest rates, creating a tense atmosphere during their meeting at the White House on May 29. Warsh, a former Fed governor widely regarded as a top contender to replace Powell, supports Trump's stance, asserting that the president has the right to criticize the central bank.

Speaking at the Reagan National Economic Forum in California on May 30, Warsh remarked that "central bank officials should not have a pampered mentality; if the president believes the Fed isn't performing well, he should be able to criticize it." He added, "The Fed was created to provide politicians with a target for their criticism… I always hold my breath when reading how harshly politicians treat the Fed."

Powell emphasized that monetary policy is determined by law and is not influenced by politics, even as he faces calls for removal from Trump, who suggested he might dismiss Powell before the latter's term ends in May next year. Furthermore, the Supreme Court recently reaffirmed the independence of the Fed.