Trump Names Two ‘Kevins’ for Fed Chair Amid Push for Aggressive Rate Cuts

In a Friday interview with The Wall Street Journal conducted in the Oval Office, President Donald Trump signaled he is leaning toward former Federal Reserve Governor Kevin Warsh or National Economic Council Director Kevin Hassett to lead the central bank next year as he pushes for sharply lower interest rates and closer coordination between the White House and the Federal Reserve.

Trump stated that the next Fed chair should consult directly with him on interest-rate decisions, calling the practice common in earlier eras and arguing presidential input has been wrongly sidelined. “Typically, that’s not done anymore,” Trump told the Journal, adding consultation “should be done” even if the Fed chair ultimately makes an independent call.

Trump emphasized he does not expect a Fed chair to “do exactly what we say,” but believes his economic judgment should carry weight because “I’m a smart voice and should be listened to.” Turning to potential successors, Trump said he is currently leaning toward Warsh or Hassett. “Yes, I think he [Warsh] is,” Trump told the Journal, remarking, “You have Kevin and Kevin, and I think the two Kevins are great.”

Trump noted that while there are “a couple of other people that are great,” 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 confirmed by Trump 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. He also stated lower rates would 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,” 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 drew 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 cut.

Trump said he has not made a final decision but is determined to avoid repeating what he views as a major mistake in selecting Jerome Powell in 2017. “I think I have somebody that I like the best,” Trump added, noting his desire to be careful after being “given a bad recommendation” when he chose Powell on the advice of then-Treasury Secretary Steven Mnuchin.

Trump has repeatedly criticized Powell for raising rates and openly expressed regret over the appointment. Treasury Secretary Scott Bessent has conducted 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 holds 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 pandemic, and was named head of the National Economic Council in January. Speaking at a Wall Street Journal event this week, Hassett downplayed betting-market speculation about his candidacy, 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 who served as a Fed governor from 2006 to 2011, was interviewed by Trump for the top job in 2017 before Powell was chosen—a decision that continues to shape Trump’s view of the central bank.