Trump "designates" Kevin Warsh and Jerome Powell as candidates for the new head of the Federal Reserve. JP Morgan CEO implies support for Kevin Warsh.

President Trump has nominated Warsh and Hassett as the main candidates for the chairman of the Federal Reserve. Trump said that Kevin Warsh and Kevin Hassett are his top choices to lead the Federal Reserve, and he expects the next central bank chairman to seek his opinion on interest rate issues. Jamie Dimon, CEO of JPMorgan Chase, hinted at supporting former Fed governor Kevin Warsh to become the next chairman of the Federal Reserve. "I think both Kevins are great," he said. "There are also several other excellent candidates." Trump had previously hinted that he had made up his mind, saying on Monday that he had a "pretty good idea" of who to nominate. Trump also stated last month that he knew who he would choose to fill the position. The latest comments indicate that the selection process is still in flux. Trump met with Warsh on Wednesday. It is currently unclear whether Trump plans to interview other candidates for the position. Warsh, a former Fed governor, was on Trump's shortlist of candidates but was not the front-runner. After meeting with the president on Wednesday, Warsh apparently gained further favor. Trump said Warsh told him that borrowing costs should be lower. "He thinks rates should be lowered," Trump said, "and so does everyone else I talked to." After the news was released, the prediction markets shifted. According to Kalshi data, the probability of Hassett being nominated was about 71%, but has now dropped to 62%, while Warsh's probability is 36%. Trump said that the next chairman of the Federal Reserve should consult him on interest rate issues. This move would disrupt the tradition of Fed independence. "I've been very successful, and I think my role at least should be advisingthey dont have to follow what I say," Trump said, adding that he expects to make a decision within "the next few weeks." "I think my voice should be heard, but I won't make decisions based on that." Trump has been working to strengthen his control over the Federal Reserve during his second term, often expressing dissatisfaction with the Fed under Chairman Jerome Powell for not more actively lowering borrowing costs. Trump has called for aggressive interest rate cuts, saying rates should be "1%, or possibly even lower." The Fed lowered its benchmark interest rate to between 3.5% and 3.75% on Wednesday, the third rate cut in three consecutive meetings. Three central bank officials dissented from this decision and the Federal Open Market Committee has not made a decision on further rate cuts. Hassett has remained cautious when asked about the possibility of taking over the position as the leading candidate, simply stating that he would be willing to serve if asked. Democratic Senator Elizabeth Warren of Massachusetts expressed concerns last Thursday that Trump may appoint a "puppet" as the chairman of the Federal Reserve to carry out his orders. JPMorgan Chase CEO Jamie Dimon has hinted at his support for former Fed governor Kevin Warsh to become chairman of the Federal Reserve, informing Wall Street executives that Kevin Hassett is more likely to support Donald Trump's calls for rate cuts. Sources revealed during a private meeting of the bank's asset management CEO held in New York on Thursday night that he agrees with Warsh's views on the Fed. As one of the most influential voices on Wall Street, Dimon also suggested that if Hassett were to become chairman of the Federal Reserve, rate cuts would be more likely in the short term. Trump, Treasury Secretary Steven Mnuchin, and other senior officials met with Warsh at the White House on Wednesday. It is expected that the president will interview at least one other candidate next week and has indicated that a decision may be announced in the coming weeks. Earlier this year, Dimon warned that "the independence of the Federal Reserve is crucial" and that intervention in the Fed "often leads to adverse consequences."