Trump Sets Lofty Growth Bar for Fed Pick Warsh

President Donald Trump has set an exceptionally ambitious growth benchmark for his nominee to lead the Federal Reserve, underscoring the intense economic and political pressure Kevin Warsh would face if confirmed as central bank chair.

In an interview with Fox Business aired Monday, Trump said Warsh could help drive U.S. economic growth to 15 percent, a level rarely achieved outside periods of crisis or rapid rebound.

The remark, while light on detail, highlighted Trump’s expectation that monetary policy should be used aggressively to accelerate expansion.

Trump said Warsh had been the runner up in his previous search for a Fed chair and described the decision to appoint Jerome Powell as a major error.

If Warsh performs as Trump believes he can, the president said, “we can grow at 15 percent, I think more than that,” praising Warsh as a high quality individual capable of delivering dramatic results.

It was not clear whether Trump was referring to annual growth or another measure. By comparison, the U.S. economy is forecast to grow about 2.4 percent this year and has averaged roughly 2.8 percent annual growth over the past half century.

Growth rates above 15 percent have occurred only a handful of times since the 1950s, most notably during the rebound from pandemic related shutdowns in 2020.

Trump’s comments reinforce his long held view that interest rates should be kept low to stimulate growth.

During the search for a new Fed chair, he said he wanted a candidate committed to lowering rates and later indicated he would not have chosen Warsh had he supported rate increases.

The remarks also suggest Trump sees Warsh as a tool to energize the economy ahead of midterm elections, which historically have proven difficult for sitting presidents.

Faster growth could bolster employment and asset prices, even as it risks reigniting inflationary pressures.

Warsh’s path to confirmation, however, may be complicated. Senator Thom Tillis, a retiring Republican from North Carolina, has said he will block any Federal Reserve confirmation votes while the administration continues to pursue a Justice Department investigation involving Powell and a Fed building renovation project.

Fox Business host Larry Kudlow questioned Trump on whether the investigation was worth delaying Warsh’s nomination.

Trump responded ambiguously, saying it remained to be seen how events would unfold and adding that he had clashed with Tillis for years.

“If it happens, it happens,” Trump said, signaling little concern about a prolonged confirmation fight.

Trump’s public expectations place Warsh in a potentially precarious position. Economic growth at anything close to 15 percent would normally be associated with surging inflation, yet Trump appeared unconcerned about price stability.

Inflation has remained stubbornly elevated in recent years, and Federal Reserve officials have projected just one interest rate cut for 2026 based on their December forecasts. Investors, however, are betting on two cuts this year.

The interview also revisited Trump’s frustration with Powell, whom he reappointed during his first term at the urging of then Treasury Secretary Steven Mnuchin. Trump said he had never felt comfortable with the decision and now views it as a significant mistake.

Powell, later reappointed under President Joe Biden, has since become a frequent target of Trump’s criticism.

Trump has repeatedly pressed for lower rates and has challenged long standing norms around Federal Reserve independence, injecting political tension into what has traditionally been a technocratic role.

As the nomination process unfolds, Trump’s remarks have made one thing clear. If Kevin Warsh takes the helm of the Federal Reserve, he will do so under an extraordinary growth mandate that could redefine the balance between economic stimulus, inflation control, and central bank independence.