#FedRateCutComing Donald Trump, New FED Chair and Interest Rate Statements! "Should Drop Below 1%"

US President Donald Trump commented on the new FED Chair candidates and the country's interest rate policy.

US President Donald Trump said he is starting to clarify his preference for who will become the FED chair next year. Trump announced that he is torn between former FED Board member Kevin Warsh and National Economic Council Director Kevin Hassett.

In an interview with the Wall Street Journal in the Oval Office, Trump stated that Warsh is among the top of the list of candidates. Trump said, "Yes, I think so. Kevin and Kevin. Both Kevins are great. There are also a few other great names." While there have been recent comments suggesting Hassett as a favored candidate, Trump’s statements also indicate that Warsh remains a strong contender.

On Wednesday, Trump asked Warsh during an approximately 45-minute meeting at the White House whether he would support rate cuts if he became FED chair. Confirming this in his Wall Street Journal interview, Trump said, "He thinks interest rates should be lowered. Everyone I’ve spoken to agrees."

Trump argued that the new FED chair should consult with him regarding setting interest rates. "This is not done much anymore, but it used to be routine. I think it should be done," Trump said, adding that this does not mean the FED chair has to follow the White House’s instructions exactly, but that his opinions should be considered. When asked where he wants to see interest rates in a year, Trump replied, "Below 1 percent, maybe even lower." He claimed that rate cuts would reduce the financing costs of the approximately $30 trillion US public debt. "We need to have the lowest interest rates in the world," he said.

This week, the FED cut its policy rate by 25 basis points to a range of 3.5–3.75%. This decision was made with the most dissent since 2019. Two FED officials opposed the rate cut entirely, while former Trump adviser Stephen Miran voted for a larger, 50 basis point cut.

Trump has previously hinted that he has made a decision regarding the FED chair. However, in his recent statements, he said no final decision has been made yet. He also expressed dissatisfaction with the fact that he relied on the advice of Treasury Secretary Steven Mnuchin when choosing current FED Chair Jerome Powell. "There’s one name I like the most, but I want to be careful. Because when I chose Powell in 2017, I received bad advice," he said.

It is reported that Trump is conducting final round interviews for the FED chair, including a meeting with Hassett. Treasury Secretary Scott Bessent reportedly met with current FED officials Christopher Waller and Michelle Bowman, who were appointed during Trump’s first term. Trump said, "I like everyone I appointed to the board."

With a doctorate in economics, Hassett is considered one of the leading candidates, especially since Bessent did not seek the position and has worked with Trump for a long time. Hassett served as Trump’s senior economic adviser from 2017 to 2019, briefly returned during the Covid-19 pandemic in 2020, and became head of the National Economic Council in January of this year.

Kevin Warsh previously served as an economic adviser in the George W. Bush administration, worked on Wall Street, and was a FED Board member from 2006 to 2011. Trump also discussed Warsh for the FED chair in 2017 but preferred Jerome Powell, who supported a looser monetary policy at that time.
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