Kevin Warsh always said the job was his. In November 2024, shortly after Donald Trump won the election, Kevin flew to Mar-a-Lago thinking he was interviewing for Treasury Secretary.
But Trump had other plans. President Trump said, “You’re my Fed Chairman.”
For over a year, Kevin repeated that to everyone. And he was right. It took 14 months, one bitter White House fight, and a criminal case against Jerome Powell, but by January 2026, Trump finally said it out loud. He appointed Kevin to head the Federal Reserve Board.
How Kevin defeated Hassett with the help of Wall Street
The biggest obstacle standing in Kevin’s way was Kevin Hassett, President Trump’s economic advisor. By late 2025, Hassett was convinced he had the job. Trump told his Cabinet that it was his choice.
All other interviews were abruptly canceled. While Kevin was vacationing in the Bahamas, Trump was vacationing with Hassett in Florida. At that point everyone thought it was Hassett.
Trump hinted to reporters, “I know who I’m going to pick,” then simply grinned.
Inside the West Wing, officials began to ignore Kevin. One senior official said it was over and scoffed like a man clinging to a sinking ship. reason? Trump thought Kevin looked desperate.
But Kevin had something that Hassett didn’t have. Powerful friends. JPMorgan CEO Jamie Dimon said he loves Kevin’s job. Stanley Druckenmiller made the call on his behalf. Treasury Secretary Scott Bessent was also close to Druckenmiller.
Kevin’s father-in-law, Ronald Lauder, is a major Republican donor and close to Trump. The crew was not silent. They called and told Trump’s team that “Mr. Hassett is too close to Mr. Trump to be considered independent from the market.”
That was dangerous. Mr. Dimon was at odds with Mr. Trump. Druckenmiller said he would not vote for Trump or Kamala Harris in 2024. Still, their argument was valid. Mr. Hassett’s Wall Street credibility came under fire. He also said he might not stay for the full four years. People began to wonder how much he wanted the job.
Hassett said he is happy with where he is. “This is my dream job,” he told reporters.
Trump wanted rate cuts, Kevin said yes.
Kevin met with Trump on December 10, just hours after the Fed cut interest rates by 0.25%. Trump has long regretted choosing Powell. He was looking for people to work with him, not against him.
He bluntly asked Kevin if he supported further cuts. Kevin said, “Yes.”
“I asked him what he thought. He thinks we need to lower interest rates,” Trump told the Journal.
While on vacation, Trump told aides that he liked Kevin’s sharpness and appearance. That was a change from 2017, when they passed on Kevin because he looked too young and chose Powell instead. At the time, Mr. Powell was seen as more open to easy monetary policy. Kevin was a hawk. He later told Professor Simon Bowmaker of New York University, “I did not put my ambition above my principles.”
After a bad first term, Trump’s team asked Kevin if he would replace Powell. he refused.
“There were no positions available,” he told Bowmaker. However, as President Trump entered his second term, negotiations resumed. Trump also considered firing Powell. Again, Kevin said not yet.
Then, on January 11, Mr. Powell went public. He announced that the Justice Department is investigating him for lying to Congress. That caused confusion. Republican senators Thom Tillis and Lisa Murkowski said they would block any nominee until the lawsuit is over. The scandal ruined Hassett’s chances. He had been criticizing Powell on television for months. Now his loyalty seemed dangerous.
On January 16, President Trump publicly shamed him. “I actually want to keep you where you are,” Trump said at a White House event, with Hassett seated in the front row.
Meanwhile, Kevin remained silent. He gave some speeches last year, but then disappeared from television.
Who are the other finalists? They never took the shot. The meeting between Federal Reserve Board Director Christopher Waller and President Trump lasted 30 minutes. Mr. Trump was two and a half hours late. Rick Reeder’s meeting was longer, but he proposed a complex rate idea. FF fund 3%, 10-year government bonds 4%, home loan 5%. He also donated to the Democratic Party and Nikki Haley. That didn’t help.
Scott began the process last summer. He interviewed 11 people. He didn’t want to be criticized for his choice, like Steven Mnuchin was in 2017 when Powell was chosen. He told friends that Trump was making the calls himself.
The delay led some officials to believe the search could expand. On Monday, before the announcement, Judy Shelton, known for supporting President Trump’s Fed views, met with Scott. That added to the speculation.
However, the Fed kept interest rates on hold on Wednesday, with Chairman Jerome Powell indicating that it may not cut rates again soon. That night, Mr. Trump met Kevin once again. At 6:48 a.m. the next morning, he officially announced it.
“I have known Kevin for a long time and believe he will go down as one of the great Fed Chairs,” Trump wrote online.
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