Trump leans toward Kevin Warsh or Kevin Hassett as next Fed chief: Report
WASHINGTON, DC: President Donald Trump said on Friday, December 12, that he is focusing on two candidates to chair the Federal Reserve in 2026. The leading contenders are former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett.
During an interview with the Wall Street Journal, Trump said Warsh is at the top of the list and added that both he and Hassett are at the forefront of the decision.
Donald Trump says 'the two Kevins are great'
Trump told the outlet, "Yes, I think he is. I think you have Kevin and Kevin. They’re both – I think the two Kevins are great. I think there are a couple of other people that are great."
He also confirmed the Journal’s earlier report that he met with Warsh at the White House on Wednesday, December 10, where Trump asked the potential nominee whether he could be trusted to support interest rate cuts.
"He thinks you have to lower interest rates, and so does everybody else that I’ve talked to," Trump said about Warsh.
POTUS added that whoever succeeds outgoing Fed Chair Jerome Powell 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. 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," he said.
When asked about where he wants interest rates to be one year from now, Trump replied, "1 percent and maybe lower than that," adding that lower rates would reduce the cost of servicing the national debt. He also stated, "We should have the lowest rate in the world."
This week, the Federal Reserve 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 percent. The cuts come amid concerns about a weakening labor market despite inflation remaining above the Fed’s 2 percent target.
Donald Trump gives himself 'A-Plus' on economy
Earlier this week, Trump told Politico that the economy under his leadership was an "A-plus-plus-plus-plus-plus." During an interview with Dasha Burns, he blamed the Biden administration for the inflationary backdrop, stating, "I inherited a mess. I inherited a total mess."
However, a recent Politico poll showed voters were unconvinced. Around half of all voters, including nearly four in ten who supported Trump in 2024, said the cost of living was as bad as they had ever experienced.
Trump insisted prices were heading in the "right direction" and said, "Prices are all coming down… Everything is coming down," despite the Consumer Price Index showing a 3 percent annual increase as of September.
Uncertainty continues over the administration’s healthcare approach. A November plan to temporarily extend subsidies was put on hold, and despite years of promising a comprehensive Obamacare replacement, Trump offered no new details. "I want to give the people better health insurance for less money. The people will get the money, and they’re going to buy the health insurance that they want," he said.
