President Donald Trump has signaled he's leaning toward Kevin Warsh or Kevin Hassett to lead the Federal Reservice next year as he pushes for sharply lower interest rates and closer coordination between the central bank and the White House.
In a Friday interview with The Wall Street Journal conducted in the Oval Office, Trump said the next Fed chair should consult directly with him on interest-rate decisions, calling the practice common in earlier eras and arguing that presidential input has been wrongly sidelined.
"Typically, that's not done anymore," Trump told the Journal, saying consultation "should be done" even if the Fed chair ultimately makes an independent call.
Trump added that while he does not expect a Fed chair to "do exactly what we say," he believes his economic judgment should carry weight because "I'm a smart voice and should be listened to," according to the Journal.
Turning to potential successors, Trump told the Journal he is currently leaning toward former Fed governor Kevin Warsh or National Economic Council Director Kevin Hassett, two economists he has known for years.
"Yes, I think he is," Trump said of Warsh being at the top of his list, telling the Journal, "You have Kevin and Kevin, and I think the two Kevins are great."
Trump said there are still "a couple of other people that are great," but his comments suggested Warsh remains firmly in contention despite recent speculation that Hassett had emerged as the front-runner.
During a 45-minute White House meeting on Wednesday, Trump pressed Warsh on whether he could be trusted to support interest-rate cuts if chosen to lead the Fed, a detail the president confirmed to the Journal.
"He thinks you have to lower interest rates," Trump said of Warsh, adding that "so does everybody else that I've talked to."
Asked where he wants interest rates to be a year from now, Trump told the Journal "1% and maybe lower than that," framing aggressive cuts as essential to economic growth.
Trump said lower rates would also reduce the cost of financing roughly $30 trillion in U.S. government debt and strengthen America's competitive position globally.
"We should have the lowest rate in the world," Trump said.
The Federal Reserve this week 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 drew three dissenting votes, the most since 2019, the news outlet reported.
Two Fed officials opposed any cut, while former Trump adviser Stephen Miran voted for a larger half-point cut, highlighting internal disagreement at the central bank.
Trump told the Journal that although he has a preferred candidate, he has not made a final decision and is determined to avoid repeating what he views as a major mistake.
"I think I have somebody that I like the best," Trump said, adding that he wants to be careful after being "given a bad recommendation" when he selected Jerome Powell as Fed chair in 2017 on the advice of then-Treasury Secretary Steven Mnuchin.
Trump has repeatedly criticized Powell for raising rates and has openly expressed regret over the appointment.
Treasury Secretary Scott Bessent has been conducting interviews as part of the selection process and has also spoken with Fed Governors Christopher Waller and Michelle Bowman, both appointed by Trump during his first term, according to the Journal.
"I like the people, all of the people I put on the board," Trump said.
Hassett, who has a Ph.D. in economics and has worked with Trump longer than any other contender, served as a senior adviser during Trump's first term, returned during the COVD pandemic and was named head of the National Economic Council in January.
Speaking this week at a Wall Street Journal event, Hassett played down betting-market speculation, saying Trump "makes his choice, and then he changes his mind, too."
Warsh, a former George W. Bush administration economic adviser and Wall Street executive, served as a Fed governor from 2006 to 2011 and was interviewed by Trump for the top job in 2017 before Trump chose Powell, a decision that continues to shape Trump's view of the central bank.
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