Trump says he'll let Warsh 'do what he wants to do' with interest rates. It's a remark that Fed watchers have been bracing for.

The president's remark comes in the wake of his long and unprecedented pressure campaign on the U.S. central bank

Kevin Warsh, President Donald Trump's nominee for chair of the Federal Reserve, departs following a Senate Banking Committee hearing last month in Washington, D.C.

President Donald Trump on Tuesday shifted his message for the Federal Reserve, suggesting he would give some slack to incoming Fed chair Kevin Warsh after putting unprecedented pressure on the U.S. central bank for more than a year.

Trump's change came in an interview with the Washington Examiner, in response to a question about whether Warsh would cut interest rates, though markets are viewing a hike as more likely.

"I'm going to let him do what he wants to do," Trump said. "He's a very talented guy, he's going to be fine, he's going to do a good job."

Trump has been hammering departing Fed Chair Jerome Powell for months because the central bank has not been lowering rates as swiftly as he would like.

Economists have been saying that Warsh - who is slated to get sworn in as Fed chief on Friday at the White House - could be in for a rough start at his new job. There has been considerable anticipation around whether Warsh can chart a policy course that differs from the president's wishes ahead of crucial midterm elections in November.

See: 5 tests Kevin Warsh will face as Fed chair

-Victor Reklaitis

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