President Donald Trump has signaled he is leaning toward Kevin Warsh or Kevin Hassett to lead the Federal Reserve next year as he pushes for sharply lower interest rates and closer coordination between the central bank and the White House.
In an interview with The Wall Street Journal conducted in the Oval Office on Friday, Trump stated that the next Fed chair should consult directly with him on interest-rate decisions. He characterized the practice as common in earlier eras and argued that presidential input had been wrongly sidelined.
“Typically, that’s not done anymore,” Trump told the Journal, adding that consultation “should be done” even if the Fed chair ultimately makes an independent call.
Trump also expressed confidence in his economic judgment, stating, “I’m a smart voice and should be listened to.” He indicated that he is currently leaning toward former Federal Reserve Governor Kevin Warsh as the top candidate for the role but noted there are “a couple of other people that are great.”
During a recent White House meeting, Trump pressed Warsh on whether he could support interest-rate cuts if chosen. Trump said, “He thinks you have to lower interest rates,” adding that this view was shared by “everybody else I’ve talked to.”
When asked where he wants interest rates to be in one year, Trump stated, “1% and maybe lower than that.” He framed aggressive rate cuts as essential for economic growth.
Trump emphasized that lower rates would reduce the cost of financing approximately $30 trillion in U.S. government debt and strengthen America’s global competitive position. “We should have the lowest rate in the world,” he said.
The Federal Reserve recently cut its benchmark interest rate by a quarter point to a range of 3.5% to 3.75%, a three-year low, though the decision received three dissenting votes—the most since 2019. Two Fed officials opposed any cut, while former Trump adviser Stephen Miran voted for a larger half-point reduction.
Trump has repeatedly criticized Federal Reserve Chair Jerome Powell for raising rates and has openly expressed regret over his 2017 selection. “I think I have somebody that I like the best,” Trump said, adding he is determined to avoid repeating what he views as a major mistake in choosing Powell.
Treasury Secretary Scott Bessent has been conducting interviews as part of the selection process, speaking with Fed Governors Christopher Waller and Michelle Bowman, both appointed by Trump during his first term.
Hassett, who served as a senior adviser during Trump’s first term and returned during the pandemic to become head of the National Economic Council in January, played down betting-market speculation about the selection. “Trump makes his choice, and then he changes his mind, too,” Hassett said at a recent Wall Street Journal event.
Warsh, a former George W. Bush administration economic adviser and Wall Street executive who served as Fed governor from 2006 to 2011, was interviewed by Trump for the top job in 2017 before Powell was chosen.
