Former US Federal Reserve Board member Kevin Warsh spoke with CNBC on July 17, 2025.
CNBC
President Donald Trump said Friday that Kevin Warsh is at the top of his list to become the next Federal Reserve chairman, but other chairs remain in contention, according to the Wall Street Journal.
Warsh, who was previously on President Trump’s shortlist but not a favorite, is himself a former Fed director and seemed even more obsessed after his interview with the president on Wednesday.
Asked if Warsh was at the top, Trump told the newspaper, “Yes, I think so,” according to an account posted Friday afternoon.
“I think there’s Kevin and Kevin. They’re both — I think both Kevins are great,” Trump said, referring to National Economic Council Chairman Kevin Hassett, who market forecasts predicted would be the favorite.
“I think there are some other great people out there,” the president added.
Hassett has emerged as the frontrunner following a Bloomberg News report. In public, he has been modest when asked about the prospect of taking office, saying he would only respond if asked. Sen. Elizabeth Warren (D-Mass.) told CNBC on Thursday that she fears President Trump will appoint a “sock puppet” to chair the Fed at his behest.
In addition to placing more emphasis on Warsh’s appointment, Trump reiterated his past assertion that the Fed chair should consult with the president on interest rate decisions.
“That’s not typically done anymore. It used to be routine. That’s how it should be,” he said. “I have a smart opinion and you should listen to it.”
Mr. Trump has been at odds with the current chairman, Jerome Powell, almost from the moment he nominated him for the position in 2017. Mr. Trump has often resorted to name-calling and personal insults to press the Fed to cut interest rates, and he is also unhappy with the current pace of rate cuts, which have kept the central bank three-quarters of a percentage point below the key rate since September.
The Fed most recently cut rates on Wednesday, lowering the benchmark federal funds rate to a range of 3.5% to 3.75%, and President Trump believes it should be lower still.
President Trump noted that Warsh generally agrees with his stance on monetary policy.
“He thinks we need to lower interest rates,” Trump said. “And so do other people I’ve talked to.”
Prediction markets moved in response to the Journal’s report. Carsi said Hassett’s odds of winning the nomination had previously been about 71%, but they have dropped to 62%, while Warsh’s chances are 36%.
Trump pointed out that there were several good candidates ahead of him, leaving him plenty of room to change his mind.
“I think I have a favorite person,” he said. When he nominated Powell for the spot, he said, “I like all of them, but I want to be careful because I received a bad recommendation.”
Over the past year, President Trump has repeatedly criticized former Treasury Secretary Steve Mnuchin, who recommended Powell. Current Treasury Secretary Scott Bessent is leading the current investigation. President Trump has publicly said he wants Bessent to take on the role, but the Treasury secretary has repeatedly said he is not interested.
Other candidates considered included current governors Christopher Waller and Michelle Bowman, as well as Rick Rieder, a fixed income manager at BlackRock. They were the last of a group of 11 candidates being considered for the position.
Powell’s term expires in May, and former President Joe Biden will reappoint him.
Asked about his legacy at a news conference Wednesday, Powell said: “The economy is in such good shape that I really want to pass this job on to whoever can replace me. That’s what I want to do.”
