Trump said he’s choosing between Kevin Hassett and Kevin Warsh for the next Fed chair
Donald Trump on Friday said he’s down to either Kevin Hassett and Kevin Warsh for the next Federal Reserve chair, telling The Wall Street Journal that both men would help bring interest rates to the level he wants, which is “around 1% or even lower.”
Trump explained that Warsh, who once served as a Fed governor, was “at the top of his list,” but added that Hassett, the National Economic Council Director, was just as strong a contender. “You have Kevin and Kevin,” Trump said. “They’re both great.” He also mentioned that a few others were being considered, though he didn’t name them.
Trump doubts Warsh will be loyal to him regarding rate cuts
Trump met Warsh at the White House on Wednesday for about 45 minutes, pressing him on whether he could “be trusted” to back rate cuts if chosen to lead the central bank. Trump confirmed that conversation, saying, “He thinks you have to lower interest rates, and so does everybody else that I’ve talked to.” The meeting, according to Trump, was part of a broader effort to make sure his next pick for Fed chair won’t resist his push for cheaper borrowing costs.
The president said he believes the Fed should once again consult the White House before setting monetary policy, something that, as he put it, “used to be done routinely.” Trump said, “It doesn’t mean I think he should do exactly what we say, but certainly I’m a smart voice and should be listened to.”
When asked where he wants rates a year from now, Trump replied, “1% and maybe lower than that.” He said lowering rates would cut the government’s debt costs, adding, “We should have the lowest rate in the world.”
Earlier this week, Cryptopolitan had reported that the Fed reduced its benchmark rate by a quarter point to a range of 3.5% to 3.75%, its lowest level in three years, though there were not one or two but three dissenting votes, the highest since 2019.
One of those dissents came from Stephen Miran, a former Trump adviser that was temporarily assigned three months ago after governor Adriana Kulger abruptly quit the Fed board.
Trump reconsiders Powell choice and narrows list
Trump has said for weeks that he’s already decided who will lead the central bank, but on Friday he admitted he hasn’t made a final call yet. He also expressed frustration about his previous choice of Jerome Powell, who he appointed in 2017 based on the advice of former Treasury Secretary Steven Mnuchin. “I think I have somebody that I like the best,” Trump said. “I like all of them, but I want to be careful because I was given a bad recommendation when picking Powell.”
The president said Treasury Secretary Scott Bessent has been conducting final interviews with top contenders, including Hassett, and has also met with two sitting Fed governors, Christopher Waller and Michelle Bowman, both appointed by Trump during his first term. “I like the people—all of the people I put on the board, I like,” Trump said.
Hassett has a Ph.D. in economics and has before worked as senior economic adviser to Trump between 2017 and 2019, returned briefly during the Covid pandemic in 2020, and took over as head of the National Economic Council earlier this year.
At a Wall Street Journal event earlier in the week, Hassett downplayed speculation that he’s the favorite. “Trump makes his choice, and then he changes his mind, too,” Hassett said.
Warsh, who served as a Fed governor from 2006 to 2011, also worked as an economic adviser under George W. Bush and previously had a career on Wall Street. Trump had already interviewed Warsh for the same post in 2017, but ultimately went with Powell, who then supported the Fed’s easy-money policies.
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