Trump "Narrowed next Fed chair candidates to two… my opinion should be reflected in rate decisions"

U.S. President Donald Trump said he has narrowed the candidates for the next Federal Reserve (Fed) chair to two. He also said the president's views should be reflected in the benchmark interest rate decision process, rekindling debate over the Fed's independence.

On the 12th (local time), in an interview with the Wall Street Journal (WSJ), President Trump said, "I've narrowed the candidates for the next Fed chair to two," and added, "They are former Fed governor Kevin Warsh and Kevin Hassett, chairman of the National Economic Council (NEC)." He went on, "Both are excellent," and "I think highly of both 'the two Kevins'."

He also argued that the next Fed chair should have at least minimal consultation with him in the interest rate decision process. He emphasized, "Nowadays it is considered uncommon for the president to be involved in rate decisions, but it was a common practice in the past," and "It doesn't have to be followed exactly, but I am a smart voice and should be sufficiently listened to."

At another White House event he reiterated, "The Fed doesn't have to do exactly what I say, but at least there should be a process of asking for the president's opinion." It is considered an unusual remark for a U.S. president to demand direct influence on the Fed's monetary policy decisions.

President Trump has repeatedly criticized current Fed Chair Jerome Powell for not cutting rates enough. The Fed cut the benchmark interest rate by 0.25%percentage point on the 11th, but President Trump continues to argue that a more aggressive easing policy is needed.