Washington, D.C. — Former Federal Reserve Governor Kevin Warsh has emerged as a leading candidate for the position of Federal Reserve chair, drawing increasing attention from President Donald Trump. This shift comes after a positive interview between Warsh and the president earlier this week.

Trump described Warsh as a top contender during a recent conversation, indicating that he was impressed with Warsh’s insights on economic policy. In discussing potential candidates, Trump noted that both Warsh and National Economic Council Director Kevin Hassett have strong qualifications. “I think you have Kevin and Kevin. They’re both — I think the two Kevins are great,” Trump stated, highlighting the potential for a competitive selection process.

Hassett had initially seemed to be the frontrunner, a status bolstered by recent media reports. Nonetheless, he has been largely non-committal about his interest in the position, asserting he would serve if called upon. Meanwhile, Senator Elizabeth Warren has expressed concerns that Trump may appoint someone who would prioritize his political interests over the Federal Reserve’s mandate.

In recent comments, Trump reiterated his belief that the Fed chair should consult with the president regarding interest rate decisions, a practice he feels has fallen out of favor. “Typically, that’s not done anymore. It used to be done routinely. It should be done,” he remarked. Trump’s ongoing critique of current chair Jerome Powell underscores his dissatisfaction with the Fed’s monetary policy direction, particularly its interest rate adjustments.

The Federal Reserve recently lowered its benchmark federal funds rate to between 3.5% and 3.75%, a move that Trump believes does not go far enough. The president indicated that Warsh shares his preference for more aggressive reductions in rates, aligning their views on monetary policy.

Following the president’s comments, prediction markets reflected a shift in favor of Warsh, whose chances of nomination rose significantly. As of now, Warsh is seen as a strong contender, with Hassett’s likelihood of securing the position experiencing a decline.

Despite his affinity for Warsh, Trump stated he has several candidates he values highly. He remarked, “I think I have somebody that I like the best,” while carefully weighing his options to avoid previous missteps in candidate selections. Trump’s past experience with former Treasury Secretary Steve Mnuchin’s recommendation of Powell has made him more cautious this time.

Other individuals under consideration include current Fed Governors Christopher Waller and Michelle Bowman, along with Rick Rieder from BlackRock. Each of these candidates represents a pool of experienced individuals vying for this pivotal economic leadership role.

As the current chair’s term is set to conclude in May, attention gradually shifts to who will succeed Powell, who has expressed his desire to leave the position with a strong economy. In recent statements, Powell acknowledged the importance of a smooth transition to his eventual successor.