In an interview with The Wall Street Journal published Friday, President Donald Trump said he has narrowed his search for the next Federal Reserve chair to two candidates—both named Kevin—who could replace Jerome Powell once Powell’s term ends next year.
“I think you have Kevin and Kevin. They’re both—I think the two Kevins are great,” Trump said, referring to former Federal Reserve governor Kevin Warsh and National Economic Council Director Kevin Hassett. He added that “a couple of other people” are also strong options.
Why It Matters
Trump has long clashed with Powell, whom he originally nominated to lead the Fed in 2018. The chair serves a four-year term and can be reappointed for another four years.
Powell was renominated by then-President Joe Biden in November 2021 and confirmed in May 2022. That means Powell’s second term as chair runs through May 2026, though he would remain a governor on the Fed’s board until 2028.
What to Know
In the interview, the Journal pressed Trump on who might replace Powell, noting that Hassett is increasingly seen by some observers as the leading contender. Trump said he has a preferred choice but is still weighing the decision.
“I think I have somebody that I like the best. I like all of them, but I want to be careful because I was given a bad recommendation,” Trump said, referencing Powell’s original nomination in 2017.
A key factor for Trump is whether the next Fed chair supports cutting interest rates. He said Warsh favors lowering rates—something Trump claims is widely supported among people he’s spoken with. Trump also suggested he wants the next chair to consult the president on interest-rate decisions, even though that is no longer standard practice.
“It used to be done routinely. It should be done,” Trump said. “It doesn’t mean—I don’t think he should do exactly what we say. But certainly we’re—I’m a smart voice and should be listened to.”
Trump said he wants rates down to 1 percent or lower and added, “We should have the lowest rate in the world.”
Who Is Kevin Warsh?
Warsh served as a Federal Reserve governor from 2006 to 2011. He was born in Albany, New York, and studied public policy at Stanford University, graduating with honors in 1992.
He earned a law degree from Harvard Law School in 1995 and also completed coursework in market economics and debt capital markets through Harvard Business School and MIT’s Sloan School of Management.
Warsh worked in Morgan Stanley’s mergers and acquisitions department before joining President George W. Bush’s administration in 2002 as a special assistant for economic policy and executive secretary at the National Economic Council. Bush later nominated him to the Fed’s Board of Governors. Warsh also served as the president’s representative at a G20 meeting.
Who Is Kevin Hassett?
Hassett is from Greenfield, Massachusetts. He graduated from Swarthmore College with a degree in economics and later earned a PhD in economics from the University of Pennsylvania.
After working as an assistant professor at Columbia Business School, Hassett joined the Fed’s Board of Governors in the Division of Research and Statistics. He later served as a policy consultant to the Treasury during both the first Bush administration and the Clinton administration.
In 1997, Hassett joined the American Enterprise Institute as a resident scholar and later became its director of economic policy. Trump nominated him to lead the Council of Economic Advisers during his first term. Hassett stepped down in 2019 and returned temporarily in 2020 to help manage the federal response to the COVID-19 pandemic.
Why Does Trump Want to Replace Jerome Powell?
During his second term, Trump has sharply criticized Powell for not moving faster on interest-rate cuts. Trump argues lower rates are necessary to ease financial pressure on markets and taxpayers.
This week, Powell cut rates by a quarter point to 3.6 percent—an adjustment Trump dismissed as “rather small” and not what he wants from the Fed.
What Happens Next?
According to the Journal, Trump plans to hold a final round of interviews with leading contenders for the role.
Treasury Secretary Scott Bessent also interviewed the two Fed governors Trump appointed during his first term, signaling that the field may be narrowing but not fully settled.
