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Trump Names Hassett and Warsh as Leading Fed Chair Candidates

Support for immediate rate cuts has become the litmus test driving the selection.

Overview

  • In a December 12 Wall Street Journal interview, President Trump praised Kevin Hassett and Kevin Warsh, saying "the two Kevins are great."
  • Reporting based on the interview indicates Trump is inclined to nominate one of the two, though no formal decision has been announced.
  • Hassett, who chairs the National Economic Council, is widely described as the frontrunner in the latest accounts.
  • Warsh, a former Federal Reserve governor, met Trump on December 10 as the president pressed candidates on backing near-term rate cuts.
  • Trump has emphasized immediate easing and has floated a policy rate near 1% within a year, while the Fed just made a third consecutive cut to a 3.5%–3.75% target range.