Next Federal Reserve Chairman Will Believe in Lower Interest Rates ‘By a Lot,’ Trump Says

Last week, Trump told The Wall Street Journal that his shortlist for replacing Fed Chairman Jerome Powell was down to Kevin Warsh and Kevin Hassett.

President Donald Trump walks toward reporters before boarding Marine One on the South Lawn at the White House on Dec. 13, 2025. Tom Brenner/Getty Images

President Donald Trump on Dec. 17 said that the next chairman of the U.S. Federal Reserve will believe in lower interest rates “by a lot.”

“I'll soon announce our next chairman of the Federal Reserve,” Trump said during a primetime address to the nation during which he outlined his national security and economic accomplishments in the first year of his second term in office.

“Someone who believes in lower interest rates by a lot, and mortgage payments will be coming down even further early in the New Year,” he said.

Trump on Nov. 30 said he had chosen his pick to replace Federal Reserve Chairman Jerome Powell, but declined to identify his nominee.

Then, during an interview with The Wall Street Journal published on Dec. 12, the president indicated that his two top picks to replace Powell were former Fed Board member Kevin Warsh and National Economic Council Director Kevin Hassett.

He told the publication that while Warsh was at the top of his list, he had not ruled out Hassett.

“I think you have Kevin and Kevin. They’re both—I think the two Kevins are great,” Trump said.

“I think there are a couple of other people that are great.”

Trump also said he thinks whoever is the next chairman should consult with him on interest rates.

Cutting Rates

The president has been critical of the current central bank chief, repeatedly lambasting Powell and Federal Reserve policymakers for refusing to lower interest rates despite inflation having fallen substantially from its 2022 peak of 9 percent.

Lowering interest rates would make borrowing cheaper and boost growth at a time when labor markets have cooled and consumer confidence has slumped.

Trump has said on several occasions that he believes the Fed is stifling the economy by being too slow to cut rates. Powell and some other Fed policymakers have defended their interest rate decisions, saying price pressures remain and more time is needed to determine whether inflation is moving sustainably toward the central bank’s 2 percent target.

Federal Reserve Chair Jerome Powell speaks during a press conference following the Federal Open Markets Committee meeting at the Federal Reserve in Washington on Dec. 10, 2025. Chip Somodevilla/Getty Images

On Dec. 10, the central bank’s Federal Open Market Committee voted to lower the benchmark federal funds rate by a quarter point to a new target range of between 3.5 percent and 3.75 percent.

The president has called for interest rates as low as 1 percent, a recommendation he reiterated in his Dec. 12 interview with The Wall Street Journal.

Trump said that, in a year from now, he wants interest rates to be at “1 percent and maybe lower than that.”

“We should have the lowest rate in the world,” he said.

Trump appointed Powell to lead the Federal Reserve in 2017. Powell first took office in February 2018 for a four-year term and was reappointed for a second four-year term in May 2022 under the Biden administration. His time as head of the Fed ends in May 2026.

Tom Ozimek contributed to this report.