“I actually want to keep you where you are, if you want to know the truth,” Trump said, addressing Hassett during an appearance in the White House. “We don’t want to lose him,” Trump said, addressing his chief of staff Susie Wiles, “but we’ll see how it all works out.”
Warsh’s surge marked a dramatic development in the race for Fed chair, which has been presided over by Treasury secretary Scott Bessent in consultation with Trump and commerce secretary Howard Lutnick.
Warsh, a 55-year-old former bank executive, served on the Fed’s Board of Governors between 2006 and 2011. He was the main conduit between the central bank and Wall Street during and immediately after the 2008 financial crisis, and was reportedly a candidate for the top job at the Treasury before Trump tapped Bessent.
It’s still unclear when Trump plans to announce Powell’s successor, although the president has hinted a decision would arrive early this year.
Controversy erupted Sunday after the Fed chair – with whom Trump has frequently clashed on interest rate policy – announced he and the central bank faced a criminal probe by the Department of Justice over comments made by Powell about renovations to the Fed’s headquarters.
