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Trump Names Warsh and Hassett as Leading Candidates to Succeed Powell at the Fed

Trump's call for rates near 1% signals pressure on Fed independence.

Overview

  • In a Wall Street Journal interview, the president said the choice is between ex–Fed governor Kevin Warsh and National Economic Council director Kevin Hassett.
  • He said a future Fed chair should consult him on interest-rate decisions, describing such outreach as previously routine.
  • Trump characterized Warsh as favoring faster cuts, saying Warsh believes rates need to be lowered.
  • Prediction-market odds for Hassett's nomination fell to about 62% from 71% after Trump's comments, according to Kalish.
  • Powell's term ends in May 2026, and the Fed recently cut its policy rate by 25 basis points to 3.50%–3.75%, the third reduction since January 2025.