U.S. Treasury Secretary Steven Mnuchin [AP Yonhap News]

Treasury Secretary Steven Mnuchin explained that President Donald Trump's statement about suing Federal Reserve (Fed) Chairman nominee Kevin Warsh if he does not lower interest rates was a joke.

In an interview with CNBC on the 6th (local time), Secretary Mnuchin said, "The President has great respect for the Fed and its independence, and his choice is Kevin Warsh," in response to concerns that Trump's lawsuit remark could raise doubts about the Fed's independence.

It was reported that President Trump stated at a dinner event on the 31st of last month that he would sue Warsh, the Fed chairman nominee, if he did not lower interest rates after taking office.

During a Senate Banking Committee hearing the previous day, when Senator Elizabeth Warren asked if the administration could promise not to sue or investigate Warsh even if he did not lower interest rates, Secretary Mnuchin replied, "That is up to the President." However, when questioned further, he added, "That was a joke."

In an interview today, Secretary Mnuchin stated that he was simply trying to explain to Senator Warren that the President's remarks were a joke.

Secretary Mnuchin reaffirmed the Trump administration's stance of pursuing policies for a strong dollar.

He said, "A strong dollar policy is about whether we are doing things to create a strong backdrop for the dollar."

He added, "Are we making the United States the best place in the world for capital through our tax policy, trade policy, deregulation policy, energy policy, and re-establishing sovereignty over critical minerals? I don't think anyone has done that better than President Trump."