Trump: Kevin Warsh, Fed chair contender, could deliver 15% growth

U.S. President Donald Trump said Kevin Warsh, whom he has named as a contender to be the next chair of the Federal Reserve (Fed), could lift economic growth to as high as 15%.

According to Bloomberg on the 10th, Trump said in a Fox Business interview, "If Warsh fully brings his capabilities to bear, the U.S. economy can grow by more than 15%," adding, "He is a very outstanding person." He said Warsh was a finalist in the previous Fed chair selection process and called choosing Chair Jerome Powell a "big mistake."

Trump’s remarks are being interpreted as premised on expectations that Warsh would pursue a more rate-cut-friendly monetary policy. However, some note that a 15% growth rate is far removed from the trajectory of the U.S. economy in recent decades. The long-run average growth rate of the U.S. economy is in the mid-2% range annually, and growth above 15% is considered extremely rare, except for some quarters in 2020 when base effects after the pandemic were at work.

The comments are also seen as a political message aimed at highlighting expectations for economic stimulus ahead of the midterm elections. Still, some have raised the possibility that the confirmation process for Warsh could be delayed. Some Republican senators have said they will not cooperate with Fed personnel confirmations, citing the Justice Department’s probe related to Powell and issues surrounding the Fed headquarters renovation.

On the possibility of a confirmation delay, Trump said he would "wait and see," showing little concern. He again referred to the background of Powell’s selection, saying, "I chose him on the strong recommendation of the Treasury secretary, but in the end it was the wrong judgment."

Meanwhile, the Fed’s dot plot released last December penciled in just one rate cut in 2026, but investors are still expecting the possibility of two cuts later this year.