Trump says his new Fed chair pick will boost US economy by 15%: 'I think more than that'

President Donald Trump's policies have come under a lot of scrutiny as some call them bad for business and consumers decry rising costs, while Trump continues to describe them as a success. Now, Gold has crashed 8% in a day, silver experienced its worst session since 1980, and Bitcoin plummeted since Trump nominated Kevin Warsh as his pick for the Federal Reserve chair. Warsh, a Stanford and Harvard alumnus with experience on Wall Street, has been Fed governor during the 2008 financial crisis, and has controversial views, often prioritizing inflation concerns. He aims to shrink the Fed's balance sheet, potentially raising interest rates, which contradicts Trump's interests. His stance is described as complex, shifting between hawkish and dovish perspectives on economic policy. Yet, Trump believes his Fed chief pick will give a 15% boost to the economy.

"We should be at 15%. If I tell you, if our new head of the Fed, who I think is going to be great, and he's a really high-quality person, but if he does the job that he's capable of, we can grow at 15%. I think more than that," Trump told Fox News host Larry Kudlow during an exclusive interview. However, Trump refrained from hinting whether the growth will be year-to-year or for a specific duration. With an average annual growth rate of 2.8% during the last 50 years, the US economy is expected to expand by 2.4% in 2026. Notably, since the 1950s, the GDP has gone up by more than 15% a few times, notably in the third quarter of 2020 when firms reopened after closing due to COVID-19, The Straits Times reported.

Powell's term expires in May, and Warsh, a former Federal Reserve governor from 2006 to 2011, is getting ready for a Senate confirmation hearing. Further in the interview, Trump revealed that Warsh was the "runner-up" in the last Fed chair election and regretted picking Jerome Powell, citing former Treasury Secretary Steven Mnuchin as a source, but ultimately calling the choice a grave error. "Well, I made a mistake. He was a runner-up, if you want to say that. He was a finalist. Yeah, he was, and I made a mistake because I had somebody that was, my secretary of the treasury wanted him so badly, so badly, and you know, I didn't feel good about him, but sometimes you listen to people, and it was a mistake. It was really a big mistake, but I think we're going to do something that's really spectacular," Trump stated. 

Trump has made it clear that he wants a Fed head who will cut interest rates, suggesting that he would not have chosen Warsh if he had supported a rise in rates. However, Warsh's confirmation is uncertain since Senator Thom Tillis wants to prevent Fed nominations until the Justice Department looks into Powell's work. Trump remained ambivalent when asked about this matter, saying, "We’ll have to see what happens."

Investors expect two rate cuts this year, but Fed officials only predict one for 2026, indicating that inflation is still ongoing. Powell, who was reappointed by Biden, is also coming under growing pressure from Trump, who is breaking with long-standing presidential conventions by calling for lower interest rates and contesting the Fed's independence, CNBC reported.

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