Donald Trump confesses ‘big mistake’ in major admission on economy

President Donald Trump is acknowledging a major reversal in his personnel judgment, admitting he made what he describes as a “big mistake” regarding one of the most powerful positions in the global economy.

In comments released Monday ahead of an interview scheduled to air Tuesday at 4 p.m. on Fox Business, Trump suggested he deeply regrets his 2017 decision to nominate Jerome Powell to lead the Federal Reserve. Although the president did not refer to the current chair by name, he pointed to the influence of his former Treasury secretary, Steven Mnuchin, in the decision-making process.

“I made a mistake,” Trump told anchor Larry Kudlow in the video. “Because I had somebody that was — my secretary of the Treasury [Steven Mnuchin] — wanted him so badly, so badly, and you know, I didn’t feel good about him, but sometimes you listen to people. And it was a mistake. It was really a big mistake.”

The admission of regret follows a period of intense public sparring between the White House and the central bank. Trump announced late last month that he intends to tap Kevin Warsh to succeed Powell as the next chair of the Federal Reserve. Powell’s term as chair expires in mid-May, though he holds a separate term as a Fed governor that lasts until January 2028, according to AP News.

The leadership transition coincides with a high-stakes pressure campaign from the president for the Fed to lower interest rates. This friction has escalated into a criminal investigation by the Department of Justice into Powell’s previous testimony regarding building renovations at the central bank’s Washington headquarters.

In a recent video statement, Powell characterized the threat of criminal charges as a “pretext” intended to undermine the independence of the Federal Reserve, as reported by AP News. The move has sparked opposition by some sitting Republicans in Congress. Sen. Thom Tillis, R-N.C., stated he would oppose any of the administration’s Fed nominees until the investigation is resolved, arguing that the “independence and credibility” of the Justice Department are now in question.

Despite the controversy, Trump has expressed high confidence in his new pick, Warsh, whom he previously described as a “runner up” for the role. Trump told NBC News last week that he believes Warsh understands the need for rate cuts, adding, “He wouldn’t have gotten the job” if he had advocated for raising them.

He also said that the federal reserve was independent “in theory.”

The president’s efforts to exert more control over the Fed conflict with public sentiment. A CBS News poll found that 68% of U.S. adults want the central bank to operate independently of the president compared with 32% who said it should be guided by what Trump wants.

During the clip of the Kudlow interview, Trump projected that the economy could grow at a rate of 15% or more under Warsh’s leadership.