President Donald Trump has identified former Federal Reserve Governor Kevin Warsh and National Economic Council Director Kevin Hassett as his primary candidates to succeed Jerome Powell as Federal Reserve Chair when Powell's term ends in May 2026. In a December 12, 2025, interview with The Wall Street Journal, Trump highlighted both individuals as "the two Kevins," indicating that Warsh has recently gained prominence on his shortlist following a personal meeting.

Trump expressed approval of Warsh's support for significantly lower interest rates, aligning with the president's repeated calls for monetary easing to stimulate growth. He also stated his expectation that the next Fed chair would routinely consult with him on policy decisions, a view that has reignited discussions about the central bank's independence from political pressures.

Kevin Hassett, a key economic adviser who previously led the Council of Economic Advisers in Trump's first administration, had long been considered the frontrunner. In contrast, Kevin Warsh offers direct experience from his 2006-2011 tenure on the Fed Board of Governors. Following the interview, prediction markets adjusted probabilities, with Warsh's chances rising and Hassett's slightly declining.

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The Federal Reserve Chair holds substantial influence over U.S. interest rates, inflation control, and employment goals. Jerome Powell, initially nominated by Trump in 2017 and later reappointed by President Biden, has drawn criticism from Trump for insufficient rate cuts despite recent reductions bringing the benchmark to 3.5%-3.75%.

While other figures like Fed Governors Christopher Waller and Michelle Bowman have undergone vetting, Trump emphasized the strength of his top choices. The nomination process will require Senate confirmation and is expected to draw intense scrutiny for its potential impact on monetary policy direction.

Analysts note that a more Trump-aligned chair could prioritize aggressive rate reductions amid ongoing economic priorities. The development reflects Trump's continued focus on low borrowing costs as his administration prepares for broader policy implementation in 2026.

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