US President Donald Trump is inclined to nominate Kevin Hassett, head of the White House National Economic Council, or former Federal Reserve board member Kevin Warsh for the post of head of the Federal Reserve.
The head of state announced this in an interview with The Wall Street Journal.
“I think the two leading candidates are Kevin and Kevin. Both Kevins are excellent“, Trump said, noting that there are “several other excellent“ candidates.
According to the newspaper, on Wednesday the American leader had a 45-minute conversation with Warsh, during which he asked the candidate whether he could be counted on to support a reduction in interest rates if he were appointed chairman of the Federal Reserve. “He believes that interest rates should be reduced. Everyone I have spoken to believes that“, Trump said.
The president hopes that within a year the main interest rate - currently 3.5-3.75% - will be “1% or even less“. He believes that the next chairman of the Federal Reserve will have to consult with him on this issue. “That does not mean that he is obliged to do exactly what we tell him. But certainly my opinion is reasonable and we should listen to it“, believes the current White House President.
Earlier, after a meeting, the Federal Reserve lowered its key interest rate for the third time in a row to 3.5-3.75%. The regulator also lowered its 2025 inflation forecast in the US from 3% to 2.9%, and its forecast for 2026 was reduced from 2.6% to 2.4%. In addition, the Federal Reserve maintained its unemployment forecast for 2025 and 2026 at 4.5% and 4.4%, respectively.
Current officials in the Washington administration have repeatedly stated that the Federal Reserve is driven by political interests and that its board of governors includes many people who oppose Trump.
Trump has sharply criticized the current Federal Reserve Chairman Jerome Powell and has suggested that he may seek his dismissal. The American leader has emphasized that the Federal Reserve must consistently lower its key interest rate. Trump claims that the financial regulator deliberately did not do this in order to keep the US government's borrowing costs high. Powell has repeatedly stated that he does not intend to resign. His term ends in May of next year.
The Federal Reserve was created by the US Congress in 1913 as an independent organization within the federal government. Officially, the agency reports directly to Congress, not to the president.