Trump Says Fed Chair Pick Kevin Warsh Could Drive More Than 15% Economic Growth

President Donald Trump expressed confidence in his Federal Reserve chair nominee Kevin Warsh to potentially drive the U.S. economy to greater heights.

In an interview with Fox Business on Monday, Trump stated that if Warsh “does the job that he’s capable of, then we can grow at 15 per cent, I think more than that.”

In the same interview, Trump acknowledged that his 2017 decision to pass over Warsh for Federal Reserve Chair was a “really big mistake.”

Warsh’s Senate confirmation may be delayed, as Republican Senator Thom Tillis has vowed to stall all Federal Reserve nominations while the Trump administration continues its Justice Department probe into Powell for the Fed building renovation project.

About the potential delay, Trump stated, “I’ve been fighting Tillis for a long time…we’ll have to see what happens.”

Markets Split On Warsh’s Fed Impact

Warsh’s nomination has been met with a mix of support and concern. IBM’s (NASDAQ:IBM) Gary Cohn praised Trump’s decision, citing positive market reactions. However, Sen. Elizabeth Warren (D-Mass.) warned that the nomination could threaten the central bank’s independence.

The new Fed nominee’s potential impact on the economy has also been a subject of debate. Macro expert Steven Major suggested that Warsh could deliver “four or five rather than two” rate cuts. Prospects of more rate cuts renewed inflation worries and are pushing investors toward shorter-term bonds over longer maturities, steepening the yield curve in the process, stated Major.

Lutnick, Amodei’s Bold Growth Forecasts

Trump’s optimism about the economy is shared by Commerce Secretary Howard Lutnick, who forecast a 6% GDP growth for the U.S. economy by 2026, attributing it to the president’s policies. Meanwhile, Anthropic CEO Dario Amodei said last month that the economy could grow by 5% to 10% on the back of the AI boom, while also warning that unemployment could rise by as much as 10%.

U.S. GDP grew at an annualized 4.3% in the July–September quarter, accelerating from 3.8% in the prior quarter and beating expectations of 3.3%, marking the strongest growth since Q3 2023.

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