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Trump Threatens Lawsuit Over Interest Rate Cuts

2/1/2026

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Story summary
  • U.S. President Donald Trump joked at a dinner he would sue Kevin Warsh if he does not lower interest rates, praising Warsh as a Federal Reserve nominee.
  • Trump has pressed the Fed to cut rates to stimulate the economy, while Jerome Powell warns political influence could harm the Fed's independence, and lawmakers threaten to block Trump's nominees.
  • Warsh, once hawkish, now says artificial intelligence (AI) could help manage inflation.