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Trump Backs Warsh for Fed Chair Amid Rate Criticism

12/13/2025

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Summary

Story summary

U.S. President Donald Trump said former Federal Reserve governor Kevin Warsh is his top choice to replace Jerome Powell as Fed chair.
He also praised both Warsh and National Economic Council Director Kevin Hassett.
Trump said the next Fed chair should consult him on interest rates, a practice he says should be reinstated.
Prediction markets showed Warsh's odds rising, amid Trump's criticism of Powell for not cutting interest rates.

History

Historical Context

The Federal Reserve Act, enacted on December 23, 1913, established the Federal Reserve System to stabilize the U.S. economy following the Panic of 1907. This act granted the Fed authority to manage monetary policy, including interest rates, which has historically led to tensions between the presidency and the Fed, particularly during economic crises. Today, these debates continue to influence U.S. economic governance.

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Story summary

U.S. President Donald Trump said former Federal Reserve governor Kevin Warsh is his top choice to replace Jerome Powell as Fed chair.
He also praised both Warsh and National Economic Council Director Kevin Hassett.
Trump said the next Fed chair should consult him on interest rates, a practice he says should be reinstated.
Prediction markets showed Warsh's odds rising, amid Trump's criticism of Powell for not cutting interest rates.

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