Trump Names Hassett and Warsh as His Leading Picks to Replace Jerome Powell at the Fed

President Donald Trump said Friday that Kevin Hassett and Kevin Warsh are now the two candidates he is considering most seriously to replace Jerome Powell as Federal Reserve chair. His remarks show the selection process is still active, despite earlier suggestions that he had already reached a decision.

What Emerged From Trump’s Meeting With Warsh

Trump met with Warsh this week, and according to people familiar with the discussion, Warsh argued that borrowing costs should come down.
Warsh, who served on the Federal Reserve Board during the 2008 crisis, has kept a strong presence in monetary-policy circles through research and commentary. His experience at the central bank is viewed by some investors as a point of stability during a period of economic uncertainty.

Hassett, who leads the National Economic Council, has been part of Trump’s economic team since the first term. Several executives who have spoken with the administration say Hassett is seen as more open to faster rate cuts.

Trump said he expects to choose a nominee “within the next few weeks.”

How Trump Described the Role of the Next Fed Chair

Speaking later at the White House, Trump said the person he appoints should keep him informed about how the committee is thinking about interest rates. While he acknowledged that the Fed would still make its own decisions, he made clear he wants more direct communication on policy matters than previous presidents have requested.

Trump has repeatedly said that rates should fall far below current levels and argued this week that a policy rate near 1%would be appropriate.

How Investors Are Reading the Two Candidates

Banks and asset managers are evaluating what each contender would mean for the timing of future rate changes. At a private event for investment leaders in New York, JPMorgan CEO Jamie Dimon said Hassett appears more inclined to support near-term cuts, according to people familiar with the conversation.
Dimon also spoke favorably about Warsh’s earlier work at the Fed and said he would be a capable chair.

Their reactions underscore how market participants are tracking the search, given the stakes for credit costs, bond yields, and business investment.

Fed Policymakers Remain Split After Latest Rate Move

The Fed lowered its benchmark rate on Wednesday for the third meeting in a row, bringing the target range to 3.5%–3.75%. Three officials dissented, showing that the committee is divided on how quickly to ease.

The next chair will inherit an institution working through uneven inflation data, slowing job growth, and pressure from the White House for deeper cuts — conditions that will shape one of the most consequential early decisions of Trump’s second term.

Also Read: Trump May Replace Fed Chair Jerome Powell: Kevin Warsh and Waller Top List