President Donald Trump said Friday that he thinks interest rates should be much lower than they are now and that the next Federal Reserve chair should take input from him on monetary policy.

Trump also revealed that he is considering either former Fed governor Kevin Warsh or National Economic Council Director Kevin Hassett for the role when current Fed Chairman Jerome Powell’s term is up next year, according to an interview with the Wall Street Journal.

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There has long been a bright line of independence between the central bank and the White House, so Trump’s comments about the Fed chair consulting him on interest rate policy will be closely scrutinized.

“Typically, that’s not done anymore,” Trump said. “It used to be done routinely. It should be done. It doesn’t mean — I don’t think he should do exactly what we say. But certainly we’re — I’m a smart voice and should be listened to.”

Trump has repeatedly criticized the Fed for holding interest rates high for most of 2025, with the central bank only recently starting to slowly trim rates. That is because inflation has remained too high, and the Fed’s interest rate target is its main tool to quash inflation.

Trump also revealed that he would like to see the Fed’s rate target move dramatically lower, from 3.50% to 3.75%, down to 1% in the next year.

“One percent and maybe lower than that,” he said, later adding that the United States “should have the lowest rate in the world.”

Trump also said Warsh is one of the top two candidates to become the next Fed chair and that Warsh agrees with him that interest rates should be lower.

“Yes, I think he is,” Trump said. “I think you have Kevin and Kevin. They’re both — I think the two Kevins are great. I think there are a couple of other people that are great.”

No matter who occupies Powell’s seat after his departure as Fed chairman, interest rates will almost certainly not be lowered to near the level the president is pushing for.

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There is little the Fed chair alone can do to lower or raise interest rates without consensus.

Instead, that is up to a 12-person board called the Federal Open Market Committee, which consists of the Fed Board of Governors and a rotation of regional Fed presidents. The FOMC collectively decides on the course of interest rate policy. However, the Fed chair can help set the tone and messaging of the central bank.

, 2025-12-12 21:40:00, , Washington Examiner, %%https://www.washingtonexaminer.com/wp-content/uploads/2023/11/cropped-favicon.png?w=32, https://www.washingtonexaminer.com/feed/, Zach Halaschak