Trump Narrows Fed Chair Search to Warsh, Hassett

President Donald Trump is narrowing his search for the next Federal Reserve chair to two leading candidates: former Fed governor Kevin Warsh and National Economic Council Director Kevin Hassett. The position will replace current Chair Jerome Powell, whose term ends in May 2025. Trump shared his preferences during an interview on December 12, signaling that final interviews with the contenders are underway as he seeks to influence the central bank's direction on interest rates.

Trump, who has long advocated for lower borrowing costs to stimulate economic growth, emphasized the need for the next chair to consider his input on monetary policy. "Typically, that's not done anymore. 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 I'm a smart voice and should be listened to." He expressed particular support for Warsh, noting that the former governor favors interest rate reductions, aligning with views Trump has promoted since returning to office in January. "Yes, I think he is. He thinks you have to lower interest rates. And so does everybody else that I've talked to," Trump added. He referred...