U.S. President Donald Trump said Friday that former Federal Reserve Governor Kevin Warsh is his leading candidate to head the central bank when Jerome Powell’s term as chair ends next May.
Trump, speaking in an interview with The Wall Street Journal, did not rule out National Economic Council Director Kevin Hassett as another option. “Yes, I think he is. I think you have Kevin and Kevin. They’re both — I think the two Kevins are great,” Trump said.
The president noted last week that he will announce his pick for the next Fed chair in early 2026. He added that the new chair should consult with him on interest rates, despite the Treasury‑Federal Reserve Accord of 1951 that established the central bank’s independence.
Trump said he expects the U.S. benchmark interest rate to be “1 percent and maybe lower than that” within a year.
On Wednesday, the Fed lowered the target range for the federal funds rate by 25 basis points to 3.5 to 3.75 percent, its third cut this year.