Kevin Warsh, former governor of the US Federal Reserve, speaks with CNBC on July 17, 2025.
CNBC
President Donald Trump said Friday that Kevin Warsh has moved to the top of his list as the next Federal Reserve chair, according to the Wall Street Journal.
Previously considered on Trump’s short list but not the favorite, Warsh, a former Fed governor himself, apparently ingratiated himself further following an interview Wednesday with the president.
“Yes, I think he is,” Trump told the paper when asked if Warsh was at the top, according to an account posted Friday afternoon.
Referring to National Economic Council Director Kevin Hassett, whom prediction markets previously had projected as the favorite, Trump said, “I think you have Kevin and Kevin. They’re both—I think the two Kevins are great,” he said.
“I think there are a couple of other people that are great,” the president added.
In addition to putting heavier weight on Warsh getting the job, Trump repeated an assertion he has made in the past that the Fed chair ought to consult the president about interest rate decisions.
“Typically, that’s not done anymore. It used to be done routinely. It should be done,” he said. “I’m a smart voice and should be listened to.”
Trump has been at odds with the current chair, Jerome Powell, almost from the moment he nominated him for the position in 2017. Often resorting to name-calling and personal insults, Trump has badgered the Fed to lower interest rates, dissatisfied even with the current pace of cuts that has seen the central bank lop off three-quarters of a percentage point from its key rate since September.
The Fed most recently cut Wednesday, taking the benchmark federal funds rate down to a range of 3.5%-3.75%, which Trump thinks should be even lower.
Trump noted that Warsh largely agrees with his stance on monetary policy.
“He thinks you have to lower interest rates,” Trump said. “And so does everybody else that I’ve talked to.”
Prediction markets moved following the Journal report. Previously giving Hassett about a 71% chance of the nomination, that slipped to 62%, with Warsh at 36%, according to Kalshi.
Trump did leave enough space to change his mind, noting that he had several good candidates in front of him.
“I think I have somebody that I like the best,” he said. “I like all of them, but I want to be careful because I was given a bad recommendation” when he named Powell to the spot.
Over the year, Trump repeatedly has blamed former Treasury Secretary Steve Mnuchin for recommending Powell. Current Treasury Secretary Scott Bessent has led the current search. Trump has made no secret that he’d prefer Bessent to take on the role, but the Treasury chief has said repeatedly he is not interested.
Other candidates considered included current Governors Christopher Waller and Michelle Bowman along with Rick Rieder, who runs the fixed income operation at money management giant BlackRock. They were the last of a group of 11 candidates considered for the post.
Powell’s term expires in May, having been reappointed to the position by former President Joe Biden.
Asked at his Wednesday news conference about his legacy, Powell said, “I really want to turn this job over to whoever replaces me … with the economy in really good shape. That’s what I want to do.”
