President Trump said Friday that he is focusing on two candidates to chair the Federal Reserve next year, with former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett the leading contenders.
Trump was interviewed by The Wall Street Journal and said that Warsh is at the top of the list, adding that he and Hassett are at the forefront of the decision.
“Yes, I think he is. I think you have Kevin and Kevin. They’re both – I think the two Kevins are great,” Trump said. “I think there are a couple of other people that are great.”
Trump confirmed the Journal’s prior reporting that he met with Warsh at the White House on Wednesday, in which the president pressed the potential nominee over whether he could be trusted to support interest rate cuts.
“He thinks you have to lower interest rates,” Trump said of Warsh. “And so does everybody else that I’ve talked to.”
The president also told the Journal that he thinks that whoever succeeds outgoing Fed Chair Jerome Powell, whose term as chair expires in May, should consult with him about setting interest rate levels.
“Typically, that’s not done anymore. It used to be done routinely. It should be done,” Trump said. “It doesn’t mean – I don’t think he should do exactly what we say. But certainly we’re – I’m a smart voice and should be listened to.”
Trump was asked in the interview about where he wants interest rates to be one year from now and the president replied, “1% and maybe lower than that,” adding the lower rates would reduce the cost of servicing the national debt.
“We should have the lowest rate in the world,” Trump added.
The Federal Reserve this week cut interest rates by 25 basis points for the third straight meeting, lowering the benchmark federal funds rate to a range of 3.5% to 3.75%.
The interest rate cut came amid concerns about a weakening labor market despite stubborn inflation remaining above the Fed’s 2% target.
Fed policymakers also released their summary of economic projections, known as the “dot plot,” which projected just one 25 basis point interest rate cut in 2026 – which would leave the funds rate at a range of 3.25% to 3.5%.
Decisions surrounding the Fed’s interest rate moves are made by the Federal Open Market Committee (FOMC), a 12-member panel that votes on rate decisions.
