Trump Favors Walsh or Hassett to Lead the Federal Reserve, Says Interest Rates Should Be at 1% or Lower in a Year

Jinse Finance reported that President Trump stated he is inclined to choose either former Federal Reserve Governor Kevin Warsh or National Economic Council Director Kevin Hassett to lead the Federal Reserve next year. In an interview in the Oval Office on Friday, the President said Warsh is his top choice. "Yes, I think he is. You know there are two Kevins," he said. "Both of them—I think both Kevins are outstanding. Of course, there are several other excellent candidates as well." In recent weeks, after Trump repeatedly hinted that he had selected a candidate for Fed Chair, Hassett has increasingly been seen as the frontrunner. However, Trump's latest remarks indicate that Warsh remains firmly in the running. According to sources, Trump held a 45-minute meeting with Warsh at the White House on Wednesday, during which he pressed Warsh on whether he could guarantee support for rate cuts if appointed as Fed Chair. Trump confirmed this in the interview. "He believes rate cuts are necessary," Trump said of Warsh. "Everyone I've spoken to thinks so as well." Trump stated that he believes the next Fed Chair should consult him when formulating interest rate policy. "That’s not usually done now, but it used to be standard practice, and it should be," Trump said. "That doesn’t mean—I don’t think he has to do exactly what I say. But without a doubt, my opinion is valuable and should be heard." When asked what interest rate level he would like to see a year from now, Trump said: "1%, or maybe even lower." He said rate cuts would help the U.S. Treasury reduce the financing costs of the $30 trillion government debt. "We should have the lowest interest rates in the world," he said.