Trump Narrows Fed Chair Choices to ’Two Kevins’ as Traders Favor Warsh
President Donald TRUMP has publicly narrowed his selection for the next Federal Reserve chair to two finalists: Kevin Warsh and current National Economic Council director Kevin Hassett. Market participants are reacting swiftly, with prediction markets showing a surge in support for Warsh following Trump's remarks.
The president emphasized his preference for a Fed leader willing to cut interest rates and collaborate closely with the WHITE House—a potential departure from the central bank's traditional independence. Warsh's odds have jumped from 12% to 38% in days, though Hassett remains the frontrunner.
Traders view the Fed chair decision as pivotal, particularly given Trump's vocal advocacy for lower rates. The eventual nominee could significantly influence monetary policy direction long before Jerome Powell's term concludes in May 2026.
