Trump says Warsh and Hassett are his top contenders for Fed chair

president Donald Trump He said on Friday that he is focusing on two candidates to head the Federal Reserve next year, with former Federal Reserve Governor Kevin Warsh and National Economic Council Director Kevin Hassett the most prominent contenders.

Trump gave an interview The Wall Street Journal Wershe is at the top of the list, he said, adding that he and Hassett are at the forefront of the decision.

“Yes, I think it is. I think you have Kevin and Kevin. Both of them – I think Kevin is great,” Trump said. “I think there are two other great people.”

Trump confirmed the newspaper’s previous report that he met with Warsh at the White House on Wednesday, where the president pressed the potential nominee on whether he could be trusted to support interest rate cuts.

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“He believes you have to lower interest rates,” Trump said of Warsh. “So does everyone else I talked to.”

The president also told the newspaper that he believes whoever succeeds outgoing Fed Chair Jerome Powell, whose term ends in May, should consult with him on setting interest rate levels.

“Normally, it’s not done anymore. It used to be done routinely. It has to be done,” Trump said. “That doesn’t mean – I don’t think he should do exactly what we say. But certainly we – I’m an intelligent voice and should be listened to.”

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Former Fed Governor Kevin Warsh is under consideration for the vacant Fed chair position next year. (Daniel Acker/Bloomberg via Getty Images/Getty Images)

Trump was asked in the interview what level he wanted interest rates to be a year from now, and the president replied, “1% and maybe less than that,” adding that lower rates would lower the cost of servicing the national debt.

“We should have the lowest rate in the world,” Trump added.

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Betting markets have recently viewed White House National Economic Council Director Kevin Hassett as a leading contender for the Fed chairman nomination. (Andrew Harnick/Getty Images/Getty Images)

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 rate cut came amid concerns about labor market weakness despite stubborn inflation remaining above the Fed’s 2% target.

Fed policymakers also released their summary of economic forecasts, known as the “plot point,” which forecast a rate cut of just 25 basis points in 2026 — which would leave the funds rate in a range of 3.25% to 3.5%.

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Decisions on the Fed’s interest rate moves are made by the Federal Open Market Committee (FOMC), a 12-member committee that votes on interest rate decisions.