- Trump said Kevin Warsh has moved to the top of his shortlist to be the next Federal Reserve chair.
- Kevin Hassett remains a contender; Trump said both “the two Kevins” are strong candidates.
- Trump reiterated that the president should be consulted on interest-rate decisions.
- Prediction markets shifted after reports, while Powell’s term runs through May.
Trump names Warsh as leading Fed chair candidate
President Donald Trump told the Wall Street Journal on Friday that Kevin Warsh, a former Federal Reserve governor, has moved to the top of his list to become the next Fed chair. Trump said Warsh and National Economic Council Director Kevin Hassett — “the two Kevins” — are both strong contenders, though he left room to consider other candidates.
Warsh spoke with Trump in an interview this week that, according to the president, strengthened his standing. Trump characterized Warsh as aligned with his view that interest rates should be lower, saying Warsh “thinks you have to lower interest rates.”
President wants a say on rate policy
Trump reiterated a longstanding position that the president should be consulted on Federal Reserve interest-rate decisions. “Typically, that’s not done anymore. It used to be done routinely. It should be done,” he told the Journal, adding, “I’m a smart voice and should be listened to.” The comment underscores tensions between the White House and the Fed that date back to Trump’s earlier criticisms of Jerome Powell.
Powell, reappointed by President Biden, is serving until May and said recently he aims to hand over the job with the economy in good shape.
Market reaction and other contenders
Prediction markets adjusted after the Journal report. Kalshi showed Hassett’s implied probability slipping from about 71% to 62%, while Warsh rose to 36%. That movement reflects increased attention on Warsh following his recent meeting with Trump.
Other names under consideration reportedly include current Fed governors Christopher Waller and Michelle Bowman, and Rick Rieder, BlackRock’s fixed-income chief. Trump also said Scott Bessent, the current Treasury secretary leading the search, has been considered, though Bessent has said he is not interested. Trump has blamed former Treasury Secretary Steve Mnuchin in the past for recommending Powell.
Context: Fed policy and recent rate cuts
The Fed this week cut the federal funds rate by 0.75 percentage points since September, most recently lowering the target range to 3.5%–3.75%. Trump has called for even lower rates. Senate and market watchers will closely watch Trump’s final selection given the Fed chair’s influence over monetary policy, inflation expectations and financial markets.
What’s next
Trump said he still has several candidates he likes and that he will be careful in making the pick after having been unhappy with a prior recommendation. With Powell’s term ending in May, the nomination process and confirmation hearings could begin early next year if Trump formally selects a nominee.
(Reporting based on remarks to the Wall Street Journal and public comments from the White House and Fed officials.)
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