President Donald Trump indicated that Kevin Hassett and Kevin Warsh are his preferred candidates to head the US Federal Reserve, and he anticipates the incoming chair of the central bank will confer with him regarding interest rates.
TL;DR
- President Trump favors Kevin Hassett and Kevin Warsh for Federal Reserve chair.
- Warsh, a former Fed governor, is now a prominent candidate.
- Trump wants the next Fed chair to consult him on interest rates.
- He believes interest rates should be 1% or lower.
During an interview with The Wall Street Journal on Friday, Trump suggested that Warsh, a former Fed governor, has risen in prominence among the potential candidates to succeed Hassett, the current head of the White House National Economic Council, who was widely considered the frontrunner for the position.
“I think the two Kevins are great,” he said. “I think there are a couple of other people that are great.”
Trump previously signaled that he already made up his mind, saying Monday he had a “a pretty good idea” of who to nominate. The president last month also said he knew who he would pick for the job. The latest comments suggest that the selection process remains in flux.
Trump had a meeting with Warsh on Wednesday. It remains uncertain whether Trump intends to interview additional candidates for the position.
Earlier: Trump Says He’ll Meet Warsh as Fed Chair Search Nears End
The president said Warsh told him that borrowing costs should be lower.
Later in the Oval Office, Trump stated that the subsequent Fed chair ought to confer with him regarding interest rates, a proposition that would disrupt a long-standing custom of the Fed's autonomy.
“I’ve been very successful, and I think my role should be at least that of recommending — they don’t have to follow what I say,” Trump told reporters, adding he expected to make a choice “over the next few weeks.”
“I think my voice should be heard, but I’m not going to make the decision based on that,” he continued.
During his potential second term, Trump has sought to exert authority over the nation's central bank, frequently voicing dissatisfaction that the Federal Reserve hasn't more forcefully lowered interest rates under the leadership of Chair Jerome Powell.
During his interview with The Journal, Trump advocated for a forceful reduction in rates, suggesting they ought to be “1% and maybe lower than that.”
On Wednesday, the Fed reduced its key interest rate to a range of 3.5% to 3.75%, marking the third consecutive meeting with such a move. Three officials from the central bank disagreed with this action, and the Federal Open Market Committee has not yet determined if additional cuts will occur.
