Trump’s Pick for Fed Chair Is Already on Track to Disappoint Him

The next chair of the Federal Reserve might already be a disappointment to President Donald Trump — even before being named.

National Economic Council Director Kevin Hassett has been viewed as the front-runner, but Trump’s having interviewed Warsh suggests the job is not necessarily Hassett’s yet. (Photo: Hoover Institution) 

Trump has demanded aggressive cuts to interest rates next year, but that is looking increasingly unlikely.

As Trump interviewed former Fed Governor Kevin Warsh for the top job at the central bank, Fed officials penciled in just one rate cut in 2026, Bryan Mena wrote in an analysis for CNN Business.

The president continues to insist that interest rates should be much lower, even criticizing the Fed’s third consecutive quarter-point cut, announced Wednesday, as “too small.”

 Earlier this week, Trump told Politico that he fully expects whoever he picks for Fed chair to cut rates.

Beyond the fact that a Fed chair does not unilaterally decide on rate moves, cutting rates next year appears unlikely due to the economic outlook for 2026 and stark divisions within the central bank’s powerful rate-setting committee.

Fed Chair Jerome Powell’s term ends in May, and Trump said last week that he expects to name a successor “early next year.”

National Economic Council Director Kevin Hassett has been viewed as the front-runner, but Trump’s interview of Warsh suggests the job is not necessarily Hassett’s yet.

While the Fed chair is a powerful and influential position, the role does not carry unilateral control over interest rates, as outlined in the Federal Reserve Act.

Monetary policy is set by the Federal Open Market Committee, a 12-member group within the Fed. Each member has one vote, including the committee chair, who is elected to that position by colleagues. The Fed chair typically serves as FOMC chair.