Trump says appointing Jerome Powell as Federal Reserve chairman was a ‘big mistake’ in first term

WASHINGTON, DC: President Donald Trump, speaking with Larry Kudlow on Fox Business on February 9, publicly reflected on what he described as a major mistake from his first term regarding the Federal Reserve chairmanship.

Trump selected Kevin Warsh to succeed Jerome Powell as Chair of the Federal Reserve, with the transition expected in May 2026, pending Senate confirmation. The decision comes amid heightened controversy surrounding Powell’s dismissal, which followed an ongoing feud with Trump over the pace of interest-rate cuts. 

Trump on Jerome Powell and Federal Reserve chairmanship

During the interview, Kudlow asked Trump when he knew he wanted Warsh to lead the Federal Reserve. Trump replied that “officially it was two Fridays ago,” before acknowledging that Warsh had previously been a finalist.

Trump said he had made a mistake during his first term, explaining that Warsh was effectively a runner-up at the time. He stated that his secretary of the Treasury had wanted Jerome Powell “so badly, so badly,” even though Trump himself “didn’t feel good about him.”

Trump said that listening to others led to what he repeatedly called a “big mistake.” He emphasized that the decision weighed on him, noting that he had concerns from the beginning but moved forward anyway. 

Trump contrasted that decision with his current confidence in Warsh, he praised Warsh as “a really high quality person” and said he believes Warsh is capable of delivering exceptional economic growth.

He stated that interest rates should be significantly lower and declared, “We should be at 15 percent,” referring to economic growth expectations. He added that if Warsh does the job he is capable of, the country could “grow at 15 percent,” and possibly more.

Trump on Kevin Warsh appointment and Senate resistance

Trump has been clear that lowering interest rates was a key requirement in his search for a new Federal Reserve chair. He said he would not have chosen Warsh if he had supported increasing rates.

Warsh, by contrast, has publicly supported lower interest rates and has called for reducing the Federal Reserve’s balance sheet, positions that align more closely with Trump’s economic views.

However, Warsh’s Senate confirmation may face delays. Senator Thom Tillis, a retiring Republican from North Carolina, has pledged to block any Federal Reserve confirmation while Trump’s administration continues a Justice Department probe into Powell and a Federal Reserve building renovation project. 

Kudlow previously directly asked Trump whether the DOJ investigation was worth holding up Warsh’s nomination. Trump responded cautiously, saying, “I don’t know, we’ll have to see what happens.”

He added that he has been “fighting Tillis for a long time,” and claimed that the conflict was so intense that Tillis “ended up quitting.”