Economy

Trump Names Warsh a Top Fed Chair Candidate, Shifting Market Odds

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Dec 13, 2025

THE BARE STORY

President Donald Trump on Friday identified former Federal Reserve governor Kevin Warsh as a leading candidate to become the next chair of the U.S. central bank. The president also confirmed that National Economic Council Director Kevin Hassett remains a strong contender, referring to both as "great" candidates. The statements caused an immediate shift in prediction markets concerning the appointment.

The president reiterated his view that the Federal Reserve chair should consult with him on interest rate policy. Trump, who has frequently criticized current Fed Chair Jerome Powell for not lowering rates enough, stated that Warsh agrees with his position that interest rates need to be reduced. The Federal Reserve has cut its benchmark rate by a total of three-quarters of a percentage point since September.

Following the president’s remarks, prediction market odds for Warsh to secure the nomination surged, with one market showing his probability rising from about 15% to as high as 40%. Meanwhile, Hassett’s chances, which were recently as high as 80%, fell below 60%, though he reportedly remained the leading candidate on Friday afternoon.

Current Fed Chair Jerome Powell’s term is set to expire in May, according to one report. On Wednesday, Powell said he aims to leave the economy in good shape for his successor. Other individuals who have been considered for the post include current Governors Christopher Waller and Michelle Bowman, and Rick Rieder. On Thursday, Senator Elizabeth Warren expressed concern that the president would appoint a "sock puppet" to the position.

Same Facts. Different Perspectives.

Two AI models. Two viewpoints. One factual foundation.

Perspective by Claude

• The president has identified strong candidates for the Fed Chair position. President Trump named former Federal Reserve governor Kevin Warsh and National Economic Council Director Kevin Hassett as top contenders. The president referred to both as "great" candidates for the job.

• The administration is seeking a candidate who aligns with its economic policy. The president stated that Kevin Warsh agrees with his position that interest rates need to be reduced. This is consistent with the president's frequent criticism of the current Fed chair for not lowering rates enough.

• The president advocates for consultation between the White House and the Fed. The article notes that President Trump reiterated his view that the Federal Reserve chair should consult with him on interest rate policy. This suggests a belief in coordination to guide the economy.

How it may affect me

As a U.S. reader:

• A new Fed chair who lowers interest rates as the president desires could reduce borrowing costs for mortgages, car loans, and credit cards.

• Increased presidential influence on the Federal Reserve may create uncertainty in financial markets and affect long-term economic stability.

• A monetary policy focused on lower interest rates could also mean reduced returns on savings accounts and other interest-bearing investments.

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