United States President Donald Trump has narrowed his choices for the position of Federal Reserve Chairman to two candidates – former Fed Governor Kevin Warsh or National Economic Council Director Kevin Hassett, according to a Wall Street Journal report.
Amid much speculation, Donald Trump confirmed his decision when he spoke to the publication on December 12. “Yes, I think he (Warsh) is. He thinks you’ve got to lower interest rates. And so does everybody else I’ve talked to. I think you have Kevin and Kevin. They’re both — I think the two Kevins are great. I think there’s a couple of other people who are great,” he said.
Who is Kevin Hasset?
Ph.D. in the economy, Kevin Hasset is the best candidate for the rumor because he has worked for Donald Trump the longest and will likely serve to cut interest rates, which the US president reportedly wants.
Hassett was Donald Trump’s chief economic adviser from 2017 to 2019. During the COVID-19 pandemic, he briefly returned to this role in 2020. In January, he was appointed head of the National Economic Council.
Who is Keven Warsh?
The report added that Kevin Warsh is an economic adviser to the George W. Bush administration. He previously worked on Wall Street and served as Fed Governor from 2006 to 2011.
When Warsh was appointed to the Fed’s board in 2006 at the age of 35, he became the youngest Fed governor in history, according to an AP report. He is now a fellow of the Hoover Institution and a lecturer at the Stanford Graduate School of Business.
Notably, he also made the top two in 2017, when Donald Trump eventually picked Jerome Powell, the WSJ report added.
Are ‘Kevin and Kevin’ the frontrunners to succeed Jerome Powell?
The report added that Kevin Hasset has been increasingly speculated as the “frontrunner,” but Donald Trump’s comment now puts Kevin Warsh in the likely top two. The report cited sources who said Donald Trump had a 45-minute meeting with Warsh on Dec. 10 and “pressed” him with his views on cutting interest rates.
In an interview with the newspaper, the American president added that the next head of the Fed should consult with him on rates. “It’s not usually done anymore. It used to be done routinely. It should be done. It doesn’t mean — I don’t think he should do exactly what we say. But we certainly are — I’m a smart voice and I should be listened to,” he told the WSJ.
Donald Trump also expressed disappointment over the appointment of incumbent Jerome Powell. “I think I have someone I like the most. I like them all, but I want to be careful because I got the wrong recommendation,” he said. The WSJ noted that then-Treasury Secretary Steven Mnuchin was the one who recommended Powell in 2017.
According to the report, in addition to grilling Warsh, Donald Trump is also holding a final round of interviews with other top contenders including Hassett. Additionally, US Treasury Secretary Scott Bessent has also talked to two current Fed governors appointed by Trump in his first term, Christopher Waller and Michelle Bowman, as potential candidates.
