Trump Narrows Federal Reserve Chair Search to Two Top Contenders

Former U.S. President Donald Trump has identified two leading candidates for Federal Reserve Chair. He named former Fed governor Kevin Warsh and current National Economic Council Director Kevin Hassett as top choices. The revelation came in a December conversation with the Wall Street Journal.

This decision highlights Trump’s ongoing focus on monetary policy direction. He has consistently voiced a preference for lower interest rates.

Profiles of the Leading Candidates

Kevin Hassett is considered a strong front-runner. He holds a Ph.D. in economics and has a long history of advising Trump. Hassett served as a senior economic adviser from 2017 to 2019.

He briefly returned to an advisory role during the COVID-19 pandemic. Trump appointed him to lead the National Economic Council earlier this year.

Kevin Warsh brings significant financial sector experience. He served as a Federal Reserve governor from 2006 to 2011. At 35, he was the youngest person ever appointed to that role.

Before his Fed tenure, Warsh worked on Wall Street. He now holds positions at Stanford University and the Hoover Institution.

Implications for Monetary Policy and Markets

The selection process signals a potential shift in Fed leadership philosophy. According to the Wall Street Journal, Trump specifically questioned Warsh about interest rate cuts. He believes the Fed chair should consult with the president on monetary policy.

Trump expressed disappointment with his previous appointment, Jerome Powell. He indicated that his 2017 recommendation for Powell, from then-Treasury Secretary Steven Mnuchin, was a mistake. This history makes his current vetting process notably cautious.

The final decision will shape U.S. economic policy for years. Both candidates are seen as potentially more aligned with Trump’s preference for aggressive rate cuts. Financial markets are closely watching for any announcement.

The search for the next Federal Reserve Chair is entering a critical phase. With “Kevin and Kevin” as named front-runners, Trump’s choice will immediately influence economic expectations. The future of American monetary policy hinges on this key appointment.

Info at your fingertips

Who is currently the Federal Reserve Chair?

Jerome Powell is the current Chair of the Federal Reserve. He was originally appointed by President Trump and later reappointed by President Biden. His term is set to expire in 2026.

Why is the Fed Chair selection important?

The Fed Chair controls the world’s most influential central bank. Their decisions on interest rates directly impact global borrowing costs, inflation, and employment. This makes the role critically important for the U.S. and world economy.

When will the next Fed Chair be chosen?

The official selection would occur if Donald Trump wins the November presidential election. The current Chair’s term runs until 2026, but a new president could choose to replace him sooner.

What are the main credentials for this role?

Candidates typically have deep expertise in economics or finance. Previous experience in monetary policy, banking, or high-level government advisory roles is common. Academic credentials are also highly valued.

How does the appointment process work?

The President of the United States nominates a candidate for Fed Chair. This nomination must then be confirmed by the U.S. Senate. The process involves thorough hearings and background checks.