Trump's sudden promotion of Warsh significantly increases his chances of being elected the next Federal Reserve Chairman.

PANews reported on December 13th that, according to the Wall Street Journal, US President Trump stated on Friday that Kevin Warsh has risen to the top of his shortlist for the next Federal Reserve Chair, although other candidates remain in contention. The Fed recently cut interest rates on Wednesday, lowering the benchmark federal funds rate to a range of 3.5%-3.75%, but Trump believes rates should be even lower. Trump noted that Warsh largely agrees with his monetary policy stance. Market forecasts have shifted accordingly; according to Kalshi's data, the market previously considered Hassett's probability of being nominated to be around 71%, but it has now fallen to 62%, while Warsh's probability is 36%. In addition to further emphasizing Warsh's potential for the position, Trump reiterated his past view that the Fed Chair should consult the president on interest rate decisions. This move would overturn the Fed's tradition of maintaining independence.