President Donald Trump indicated that former Federal Reserve governor Kevin Warsh has become the leading contender to succeed Jerome Powell as Fed chair.
Trump made the comments in an interview, saying Warsh moved to the top of his list following a meeting at the White House earlier in the week.
Asked directly whether Warsh was now his preferred choice, Trump responded, “Yes, I think he is.”
The president suggested that while Warsh appears to have an edge, others remain in the running.
He singled out Kevin Hassett, the National Economic Council director, saying, “I think you have Kevin and Kevin. They’re both — I think the two Kevins are great.”
Trump added that he is considering “a couple of other people that are great” as well.
Hassett Still in Contention Despite Shift in Momentum
Hassett had previously been seen as the strongest candidate, according to market betting activity.
He has publicly downplayed the speculation, saying he would serve only if asked.
Senator Elizabeth Warren expressed concern over Trump’s potential selection, warning the president might appoint what she described as a “sock puppet” to guide monetary policy in his direction.
The recalibration of expectations comes after Bloomberg’s reporting initially boosted Hassett’s odds.
However, following Trump’s latest remarks, betting activity shifted notably toward Warsh.
Trump Repeats His View That Presidents Should Influence Rate Decisions
The president restated his belief that the Fed chair should consult him before making interest rate decisions.
“Typically, that’s not done anymore. It used to be done routinely. It should be done,” Trump said.
“I’m a smart voice and should be listened to.”
Trump has repeatedly criticized Jerome Powell since appointing him in 2017.
He has frequently attacked Powell’s decisions, arguing that interest rates have not been cut aggressively enough.
The central bank has lowered rates by three-quarters of a percentage point since September, most recently reducing the benchmark range to 3.5%–3.75%.
Trump has insisted this is still too high.
Warsh Seen as Aligned With Trump’s Monetary Views
The president emphasized that Warsh shares his desire for lower interest rates.
“He thinks you have to lower interest rates,” Trump said.
“And so does everybody else that I’ve talked to.”
Prediction markets reflected the shift.
Hassett’s odds declined from 71% to roughly 62%, while Warsh climbed to 36%.
Trump Says He Wants to Avoid Repeating Powell “Mistake”
Trump hinted he has settled on a preferred candidate but left room to make changes.
“I think I have somebody that I like the best,” he said.
“I like all of them, but I want to be careful because I was given a bad recommendation” when he chose Powell.
He has consistently blamed former Treasury Secretary Steve Mnuchin for encouraging that pick.
Current Treasury Secretary Scott Bessent has been responsible for coordinating the search process.
Trump has openly stated he’d prefer Bessent take the job, though Bessent has declined.
Other Candidates Still Under Consideration
Other individuals considered include Fed Governors Christopher Waller and Michelle Bowman.
Rick Rieder, who oversees fixed-income strategy at BlackRock, was also part of the final group.
Powell’s term expires in May.
Asked about his legacy, Powell said, “I really want to turn this job over to whoever replaces me … with the economy in really good shape. That’s what I want to do.”