Trump Says He 'Made A Mistake' Passing Over Kevin Warsh For Fed Chair In 2017: 'Really Big Mistake'

President Donald Trump acknowledged on Monday that his 2017 decision to pass over Kevin Warsh for Federal Reserve Chair was a “really big mistake,” attributing the move to pressure from his former Treasury Secretary.

The Runner-Up Regret

Speaking to Fox Business, the President reflected on the 2017 selection process that ultimately saw Jerome Powell lead the central bank. Trump revealed that Warsh had been the “runner-up” in his mind, but that he had allowed himself to be swayed by then-Treasury Secretary Steven Mnuchin.

“I made a mistake because I had somebody who was my Secretary of the Treasury, wanted him so badly,” Trump said, adding, “I did not feel good about him [Powell], but sometimes you listen to people. It was a mistake, a really big mistake.”

The President's candid admission comes just days after he officially nominated Warsh to succeed Powell when the latter's term expires in May 2026.

Trump expressed high confidence in his new pick, describing Warsh as a “high-quality person” capable of driving U.S. economic growth to a staggering 15%.

Economic Radicalism, Rate Cuts

The nomination of Warsh, a former Fed governor (2006?2011), has already jolted global markets. While traditionally viewed as an inflation hawk, Warsh has recently aligned with Trump's pro-growth agenda.

Macro experts suggest Warsh could deliver as many as five rate cuts, a sharp departure from the Fed's current “reactionary” data-dependent model.

Warsh has publicly criticized current bank regulations as “archaic” and called for a “reformed American regulatory regime” to streamline capital disbursement.

Construction Scandals And DOJ Probes

The transition at the Fed is unfolding amidst a bitter legal and political battle. Trump reiterated his attacks on outgoing Chair Jerome Powell over a $2.5 billion renovation of the Federal Reserve headquarters, labeling it the “most expensive construction job ever built” per square foot.

“They’re either corrupt? or grossly incompetent,” Trump stated, claiming he could have completed the project for $25 million.

The Department of Justice, led by U.S. Attorney Jeanine Pirro, is currently probing Powell for alleged mismanagement related to the project. Despite threats from Senator Thom Tillis to block Warsh’s confirmation until the probe is resolved, Trump remains unfazed, saying: “If it happens, it happens.”

Dow Jumps Over 3% In 2026

As of Monday’s close, the Dow Jones index rose 3.62% year-to-date, whereas the S&P 500 was 1.55% higher. However, the Nasdaq Composite index was just 0.01% higher in 2026.

Meanwhile, the U.S. futures were trading lower on early Tuesday following a positive close on Monday.

The SPDR S&P 500 ETF Trust and Invesco QQQ Trust ETF , which track the S&P 500 index and Nasdaq 100 index, respectively, closed higher on Monday. The SPY was up 0.48% at $693.95, while the QQQ advanced 0.77% to $614.32.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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