Trump backs Fed nominee Kevin Warsh, predicts 15% GDP growth
What's the story
US President Donald Trump has claimed that his nominee for the Federal Reserve, Kevin Warsh, could potentially drive the country's economy to a whopping 15% growth rate. The ambitious target was set during an interview with Fox Business. However, it remains unclear if Trump was referring to year-on-year growth or some other metric.
Appointment remorse
'Big mistake' appointing Powell as Fed chair: Trump
Trump also expressed regret over his decision to appoint Jerome Powell as the Fed chair, calling it a "big mistake." He said Warsh was his second choice for the position. If Warsh "does the job that he's capable of," then "we can grow at 15%, I think more than that," Trump told Fox Business host Larry Kudlow.
Confirmation challenges
Warsh's Senate confirmation could be delayed
Despite Trump's confidence in Warsh, his Senate confirmation could be delayed. Senator Thom Tillis, a retiring Republican from North Carolina, has vowed to block any Fed confirmation as long as the Trump administration is pursuing a Justice Department investigation into Powell and a Fed building renovation project. When asked about the DOJ investigation delaying Warsh's nomination, Trump said he wasn't sure but was willing to let things play out.
Economic strategy
Trump's interview reveals concerns about inflation and interest-rate cuts
Trump's comments in the interview suggest he is not worried about inflation, which would normally rise with growth rates close to 15%. Fed officials projected just one interest-rate cut for 2026 in December. However, investors are still betting on two cuts this year. In the interview, Trump also revealed that former Treasury Secretary Steven Mnuchin was instrumental in his decision to pick Powell as Fed chair.