Related video: The White House’s Peter Navarro discusses the Federal Reserve
“Shark Tank” investor Kevin O’Leary on Thursday warned President Trump against setting interest rates after the president threatened to replace the Federal Reserve chair for refusing to lower rates.
“The reason we don’t have hyperinflation like Venezuela is we have a Fed. If you allow the ‘el presidente’ to set interest rates, you end up with bread costing $1,000 more every day,” O’Leary said during a Thursday appearance on Fox Business.
“And that’s what happens in Venezuela. So, you know, these — the idea that you have the executive deciding monetary policy, that just doesn’t work,” he added.
This week, Trump attempted to fire Federal Reserve board member Lisa Cook for alleged mortgage fraud. Democrats said the effort was launched to interfere with the independent agency’s nonpartisanship to force lower rates.
Stephen Miran, the current White House economic policy chief, was appointed by Trump to temporarily join the Fed board after another member stepped down.
White House trade adviser Peter Navarro said shifts in the board’s makeup amid calls for Fed Chair Jerome Powell’s resignation are beginning to weigh on the economic chief.
”Powell should see the tea leaves here,” Navarro said during a Tuesday appearance on NewsNation’s “The Hill.”
”I mean, interestingly enough, he’s beginning, grudgingly, to come over to the idea that he shouldn’t be holding rates up because of tariffs,” he added.
O’Leary has been relatively supportive of the president’s unprecedented trade policy, citing significant revenue gains for the country.
However, he urged Trump to use extra funds to pay down the national debt instead of providing citizens with retail checks.
“What should be happening now with any extra income is to pay down the national debt,” O’Leary said during a previous appearance on CNN’s “NewsNight” with Abby Phillip.
“That‘s the opportunity, because the greatest gift you can give to the future is to pay down the debt, which is just really, really big,” he added.
Treasury Secretary Scott Bessent said the administration was looking to pay off outstanding debts as proposed earlier this month.
“I’ve been saying that tariff revenue could be $300 billion this year. I’m going to have to revise that up substantially,” Bessent said on CNBC’s “Squawk Box.”
“We’re going to bring down the deficit to GDP. We’ll start paying down the debt, and then at that point that can be used as an offset to the American people.”
