Trump demands Fed listen to him as he lines up new leader: ‘I’m a smart voice’ | Federal Reserve
Donald Trump has declared he “must be listened to” by the Fed as he weighs candidates to lead the central bank amid his extraordinary campaign for greater control over White House decisions.
Former Fed Governor Kevin Warsh is currently at the top of the list of those to head the central bank, the President said Friday.
Current Fed chair Jerome Powell is scheduled to finish his eight-year term in the role next May. Trump’s repeated opposition to demands for sharp cuts in interest rates has led the president to launch a series of public attacks.
Trump also sees adviser Kevin Hassett, who chairs the National Economic Council, as a potential chairman of the Fed.
“I think you’ve got Kevin and Kevin. Both; I think two Kevins are great,” the president said. he told the Wall Street Journal on Friday. “I think there are a few others that are great.”
Trump, who has harshly criticized the central bank’s policymakers for their cautious approach to cutting interest rates since returning to office in January and even tried to fire a member of the central bank’s interest-setting policy committee, is expected to soon nominate a candidate to lead the Fed.
Trump claimed in the interview that Warsh “thinks you should lower interest rates,” in line with views he has expressed for months. “And so does everyone I talk to.”
Trump argued that the next Fed chairman should listen to him about the future direction of interest rates. “This is generally not done anymore,” he told the Wall Street Journal. “It must be done.”
“That doesn’t mean he has to do exactly what we say,” Trump added. “But certainly we – I am a wise voice and should be listened to.”
Earlier this week, the Fed cut interest rates by a quarter point for the third time this year. But policymakers have signaled their reluctance to make multiple cuts next year amid growing uncertainty about the direction of the economy.
At a news conference Wednesday, Powell said the Fed is trying to balance “significant downside risks” to the labor market with inflationary pressures from Trump’s tariffs that are “pretty clear to see.”
