President Trump said Friday he has two leading candidates to lead the Federal Reserve when current Chair Jerome Powell’s term ends in May: former Fed governor Kevin Warsh and National Economic Council Director Kevin Hassett.
Trump said last month he had already picked his candidate, with Hassett seen as the favorite, but Warsh’s name has returned to the mix in recent days, indicating that the decision is still up in the air.
“I think you have Kevin and Kevin,” Trump told The Wall Street Journal. “They’re both—I think the two Kevins are great.”
Whoever takes the post will be under pressure to cut the Fed’s benchmark interest rate quickly, something Trump has been pushing for all year. Trump said he thinks the Fed chief should consult him before making any decisions, a significant change from the current mode of operation, which seeks to insulate the central bank from political influence.
“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 we’re — I’m a smart voice and should be listened to.”
Asked how low he would like to see interest rates go, Trump made it clear he wants the new Fed chief to be aggressive. Rates should be “1% and maybe lower than that,” Trump said. “We should have the lowest rate in the world.”
This week, the Fed lowered its benchmark rate to a range between 3.5% and 3.75%, and the current slate of central bank officials expects to execute just one more quarter-point rate cut over the next year.