Trump appoints new chairman of the Federal Reserve, several popular candidates who were not selected call out: Interest rates are too high and should be lowered

Trump nominates Warsh as Federal Reserve Chairman, losing candidates express support and criticize current monetary policy.

Wall Street Journal mentioned that on Friday, January 30, U.S. President Trump announced he would nominate Kevin Warsh as Chairman of the Federal Reserve, succeeding Powell, whose term ends in May 2026.

This personnel arrangement means that several officials who were once considered popular candidates by the market have lost out, but they quickly expressed support for Warsh and shared their views on current monetary policy.

White House National Economic Council Director Hassett stated he was not disappointed about losing out, saying he already has the position he wants and will fully push for the Senate to confirm Warsh's nomination. He also criticized the Federal Reserve's decision to maintain interest rates in January as a mistake.

Federal Reserve Governor Mulan also expressed that he would welcome Warsh and praised his innovative spirit and correct views. He stated he would continue to serve as a governor until Congress confirms a successor, while emphasizing that current interest rates remain too restrictive.

Hassett criticizes current monetary policy stance

As one of the candidates once viewed as a strong contender, Hassett quickly expressed support for Warsh after losing, stating he holds great respect for this candidate and will find ways to push the U.S. Senate for confirmation.

Current White House advisor Hassett stated he is not disappointed about "not being nominated by President Trump as Federal Reserve Chairman," as he already has the position he wants.

Hassett explicitly criticized the Federal Reserve's latest decision, stating that not lowering interest rates in January was a mistake. He mentioned that the Trump administration's executive work is to make the Federal Reserve's job easier and believes that supply-side prosperity will give the Federal Reserve room to lower interest rates.

On the issue of dollar policy, Hassett reiterated in a media program that a strong dollar has been the policy of U.S. Treasury Secretaries for decades, and referred to Secretary Bentsen as the spokesperson for dollar policy.

When asked about the weakening dollar, he stated that the trend will fluctuate and added that the dollar will strengthen when fiscal policy supports it.

Mulan praises Warsh and emphasizes the necessity of rate cuts

Federal Reserve Governor Mulan stated he assumes Warsh will take over his governor position and expects that Federal Reserve officials will also welcome him well. He praised Warsh for his consistent innovative spirit, persuasiveness, and many correct views.

The "temporary" governor term is about to end, and Mulan revealed he does not know where to go from here, waiting for results, but will continue to serve as a governor until Congress confirms a successor.

He also thanked Powell for his contributions, stating that Powell deserves the gratitude of all Americans for helping the country avoid a second Great Depression.

On the monetary policy stance, Mulan clearly stated he still believes the FOMC rates are too restrictive, employment has not stabilized enough to eliminate concerns, and there is currently no inflation problem in the U.S., with the unemployment rate about 0.5 percentage points too high.

He also mentioned that reducing the Federal Reserve's balance sheet requires regulatory reform, and deregulation would allow the Federal Reserve to shrink its balance sheet.

Waller's dissenting vote highlights rate cut pressure

In a statement on Friday, Governor Waller, who cast a dissenting vote at this week's Federal Reserve meeting, elaborated on his reasons for disagreeing with maintaining interest rates. He believes monetary policy is still restricting economic activity, and economic data clearly indicates the need for further easing Waller's dissent reflects his concerns about the fragility of the labor market. He pointed out that since mid-last year, the unemployment rate has risen, job growth has slowed, and upcoming data revisions may show that wage employment actually did not grow last year.

Waller revealed that he learned about the layoff plans for 2026 during multiple outreach meetings, indicating that there is considerable uncertainty regarding future job growth, and a significant risk of a substantial deterioration in the labor market.

He also noted that excluding the impact of Trump's tariffs, inflation is actually very close to the Federal Reserve's 2% target.

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