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Possible Trump pick for Fed has a plan to cut interest rates, with a catch

Why This Matters

Kevin Warsh, the former Fed governor considered the most likely replacement for Jerome Powell to lead the Fed, on Monday night articulated his vision for policy.

July 8, 2025
09:25 AM
2 min read
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Advanced ➔ Results Possible Trump pick for Fed has a plan to cut interest rates, with a catchPublished: July 8, 2025 at 5:25 a. ETResizeListen(2 min)Former Fed Gov.

Kevin Warsh wants to cut interest rates and the central bank’s balance sheet.

Kevin Warsh, the former Fed governor considered the most ly replacement for Jerome Powell to lead the Fed, on Monday night articulated his vision for policy. “Interest rates should be lower.

The balance sheet should be smaller,” Warsh told Larry Kudlow on Fox.

The Author Steve GoldsteinSteven Goldstein is based in London and responsible for MarketWatch's coverage of financial in Europe, with a particular focus on global macro and commodities.

Previously, he was Washington bureau chief, directing MarketWatch's economic, political and regulatory coverage. Steve on Twitter: @MKTWgoldstein.

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FinancialBooklet Analysis

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Key Insights

  • The Federal Reserve's actions could influence market sentiment across sectors
  • Financial sector news can impact lending conditions and capital availability for businesses

Questions to Consider

  • How might the Fed's policy stance affect borrowing costs and economic growth?
  • Could this financial sector news affect lending conditions and capital availability?

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