The Big Money Show takes a look at President Trump and reveals he knows his pick for Federal Reserve chairman and what the expected interest rate decision is.
President Donald Trump said Friday he is focusing on two candidates to become chairman of the Federal Reserve next year, with former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett the top contenders.
Trump was interviewed by The Wall Street Journal and said Warsh is at the top of the list, adding that he and Hassett are at the forefront of the decision.
“Yes, I think so. I think you have Kevin and Kevin. They’re both – I think the two Kevins are great,” Trump said. “I think there are a few other people who are great.”
Trump confirmed the Journal’s earlier reporting that he met with Warsh at the White House on Wednesday, in which the president pressed the potential nominee on whether he could be trusted to support rate cuts.
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President Donald Trump said Warsh and Hassett are the two leading candidates for his nomination as Fed chairman. (REUTERS/Jonathan Ernst/Reuters Photos)
“He thinks you should lower interest rates,” Trump said of Warsh. “And so have everyone else I’ve spoken to.”
The president also told the Journal that he believes whoever replaces outgoing Fed Chairman Jerome Powell, whose term ends in May, should consult with him on setting interest rate levels.
“Normally that’s not done anymore. It used to happen routinely. It should be done,” Trump said. “It doesn’t mean – I don’t think he has to do exactly what we say. But we’re sure – I’m a smart voice and it should be listened to.”
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Former Fed Governor Kevin Warsh is being considered for the vacancy of Fed chairman next year. (Daniel Acker/Bloomberg via Getty Images/Getty Images)
Trump was asked in the interview where he wants interest rates to be a year from now and the president replied: “1% and maybe even lower.”
“We should have the lowest tariff in the world,” Trump added.
FED DELIVERS THIRD STRAIGHT RATE REDUCTION BUT ‘DOT PLOT’ PROJECTS ONLY ONE REDUCTION IN 2026
Kevin Hassett, director of the White House National Economic Council, was recently seen by the betting markets as the leading candidate for Fed chairman nomination. (Andrew Harnik/Getty Images/Getty Images)
The Federal Reserve this week cut rates by 25 basis points for the third straight meeting, lowering the fed funds rate to a range of 3.5% to 3.75%.
The rate cut came amid concerns about a weakening labor market, despite persistent inflation remaining above the Fed’s 2% target.
Fed policymakers also released their summary of economic projections, known as the “dot plot,” which forecast just one rate cut of 25 basis points in 2026 — leaving the fund rate at a range of 3.25% to 3.5%.
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Decisions surrounding the Fed’s interest rate movements are made by the Federal Open Market Committee (FOMC), a twelve-member panel that votes on interest rate decisions.
