"Two 'Kevins' lead the race for the Federal Reserve chairman candidate, Trump says interest rate policy should be consulted with the president."

President Trump announced on Friday that former Federal Reserve Board director Kevin Warsh has emerged as the top candidate for his next Federal Reserve Chairman, but the final decision has not been made. Warsh was previously on Trump's list of candidates, but was not the favorite until his status rose significantly after a meeting with the president on Wednesday. When asked if Warsh was now his top choice in an interview with the newspaper, Trump responded, "Yes, I think so." This statement was made in a report on Friday afternoon. Trump also mentioned Kevin Hassett, the Chairman of the White House Council of Economic Advisers, who was previously seen as a leading contender, saying, "I think it's now two Kevins, they are both great." He added that there are still "several other very outstanding candidates." Hassett was seen as the frontrunner, but has been cautious in public settings, only saying that he would be willing to serve if asked. Democratic Senator Elizabeth Warren warned on Thursday that she is concerned Trump may appoint a "puppet" as the Federal Reserve Chairman. While emphasizing Warsh's increased chances, Trump reiterated his consistent belief that the Federal Reserve Chairman should consult with the president when formulating interest rate policies. "It's not generally done now, but it used to be the custom in the past, and I think it should be done," Trump said, "I am a smart voice and should be listened to." Since nominating Powell to serve as the Federal Reserve Chairman in 2017, Trump has had a strained relationship with him. He has repeatedly publicly pressured the Federal Reserve for faster and larger rate cuts, even using personal attacks. Despite the Federal Reserve cutting rates by a total of 75 basis points since September, Trump remains dissatisfied with the pace of the rate cuts. The Federal Reserve cut rates again on Wednesday, lowering the federal funds rate target range to 3.5%-3.75%. Trump believes this level is still too high, and points out that Warsh is more in line with his views on monetary policy. "He believes that rates must be lowered," Trump said, "others I've spoken to also share this view." With the release of this report, prediction markets quickly responded. According to Kalshi's data, Hassett's probability of being nominated dropped from around 71% to 62%, while Warsh's probability increased to 36%. However, Trump still leaves room for a final decision. He stated that he "really likes one candidate," but will be particularly cautious, as he "listened to the wrong advice" when appointing Powell. The current selection process is being led by Treasury Secretary Mnuchin, with Trump expressing a desire for Benson to take on the role, but Benson has repeatedly stated that he is not eager to do so. Other considerations for the position include current Federal Reserve Board members Christopher Waller and Michelle Bowman, as well as Rick Rieder, the Head of Fixed Income at BlackRock. These individuals are the final group from the original list of around 11 candidates. Current Federal Reserve Chairman Powell's term expires in May of next year, and he was reappointed by former President Biden. Powell mentioned during a press conference on Wednesday that he hopes to hand over the position to a successor when the U.S. economy is in a "very good state," stating that this is his most important goal.