Trump NARROWS Fed Pick to Two – Decision Soon!

Man in a suit with a blue background.

President Trump narrowed his Federal Reserve chair search to two trusted allies promising interest rate cuts, signaling a direct challenge to the central bank’s sacred independence.

Story Snapshot

  • Trump leans toward Kevin Warsh or Kevin Hassett after recent meetings and assurances on lowering rates.
  • Former Fed Governor Warsh gains momentum with JPMorgan CEO Jamie Dimon’s endorsement.
  • Hassett, Trump’s National Economic Council Director, remains frontrunner due to loyalty despite Wall Street skepticism.
  • Selection stems from Trump’s regret over Jerome Powell’s first-term policies.
  • Announcement looms as current term ends in late January 2026.

Trump Narrows Fed Chair Search to Two Kevins

President Trump revealed in a Wall Street Journal interview his preference for Kevin Warsh or Kevin Hassett as next Federal Reserve chair. He met Warsh on Wednesday, securing commitments for interest rate reductions. Trump called both “great,” narrowing from earlier broad considerations. This choice reflects his priority for monetary policy alignment after first-term frustrations with Jerome Powell. The current chair’s term expires end of January 2026.

Trump shifted from claiming one pick in recent weeks to this shortlist. Mid-November reports positioned Hassett as frontrunner among advisers. Warsh, a former Fed governor from 2006-2011, re-emerged post-meeting. JPMorgan CEO Jamie Dimon endorsed Warsh hours before the report at a closed-door event. Wall Street favors Warsh’s experience over Hassett.

Warsh’s Fed Experience Versus Hassett’s Loyalty

Kevin Warsh served as Federal Reserve Governor during the 2008 financial crisis. His hawkish past draws Wall Street support, including Dimon’s public nod. Warsh assured Trump of rate cuts in their meeting, addressing Trump’s economic agenda. This endorsement from banking leaders underscores Warsh’s credibility in markets sensitive to Fed signals.

Kevin Hassett directs the White House National Economic Council. Trump views him as a close ally committed to aggressive rate reductions. Advisers highlighted Hassett’s frontrunner status in November 2025. Wall Street remains unenthusiastic, preferring seasoned Fed insiders. Hassett emphasized Fed independence, noting the FOMC can reject presidential input.

Trump’s Push Challenges Fed Independence

Trump seeks greater influence over the independent central bank. His first-term Powell pick soured over rate hikes clashing with growth goals. Now, Trump demands rate-cut commitments from candidates. This approach aligns with conservative values prioritizing economic expansion over bureaucratic autonomy. Common sense dictates a leader accountable to voters, not insulated elites.

Hassett stated the president remains “free to offer opinions,” but the FOMC holds final say. Bloomberg analysis notes Trump’s indecision evolved from Powell remorse and interviews. Markets watch closely, as a rate-cut focused chair could boost growth but risk inflation. Announcement timing points to early 2026.

Short-term, markets anticipate policy shifts from Warsh’s experience or Hassett’s alignment. Long-term, persistent presidential pressure may erode Fed independence, echoing conservative critiques of unelected power. Businesses face lower borrowing costs, aiding expansion. Voters benefit from growth-oriented policy over rigid orthodoxy.

Sources:

Hassett Emerges as Frontrunner in Trump Fed Chair Audition

RELATED ARTICLESMORE FROM AUTHOR