President Trump has indicated his preference for former Federal Reserve Governor Kevin Warsh or National Economic Council Director Kevin Hassett to lead the Fed next year.
During an Oval Office interview on Friday, the president named Warsh as his top choice. "Yes, I think he is. You know there are two Kevins," he said. "Both of them—I think both Kevins are outstanding. Of course, there are a few other excellent candidates as well."
Hassett had recently emerged as a frontrunner after Trump hinted multiple times in recent weeks that he had settled on a nominee. However, Trump's latest remarks suggest Warsh remains a strong contender.
According to sources familiar with the matter, Trump met with Warsh for 45 minutes at the White House on Wednesday, pressing him on whether he would commit to supporting rate cuts if appointed Fed chair.
Trump confirmed the discussion in the interview. "He thinks you have to lower rates," Trump said of Warsh. "Everyone I speak to agrees."
The president stated that the next Fed chair should consult him on interest rate policy. "It’s not normally done now, but it used to be standard practice—and it should be," he said. "That doesn’t mean—I don’t think he has to do exactly what I say. But certainly, my opinion is valuable and should be heard."
When asked where he would like rates to be in a year, Trump replied, "1%, maybe even lower."
He argued that lower rates would help the Treasury reduce financing costs for the $30 trillion national debt.
"We should have the lowest rates in the world," he added.
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