US President Donald Trump said he believes the US economy could grow as much as 15% if former Federal Reserve governor Kevin Warsh becomes Fed Chair, replacing Jerome Powell.
“If he does the job that he’s capable, we can grow at 15%. I think more than that,” Trump told Fox News’ Larry Kudlow.
Warsh, a former Fed governor who served from 2006 to 2011, is awaiting a Senate confirmation hearing expected in May, when Powell’s term expires. Trump said Warsh was the “runner-up” the last time he picked a Fed chair—and that choosing Powell instead was a mistake.
“My secretary of the Treasury wanted him so badly, so badly,” Trump said, referring to former Treasury secretary Steven Mnuchin. “And I didn’t feel good about him. But sometimes you listen to people—and it was a mistake. It was really a big mistake.”
It is pertinent to note that what Trump meant by 15% growth—year-on-year or otherwise—was unclear.
The US economy is expected to grow about 2.4% this year and has averaged 2.8% annual growth over the past five decades. GDP has crossed the 15% mark only a handful of times since the 1950s, most notably during the rebound in the third quarter of 2020 after pandemic shutdowns.
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Trump has been explicit about what he wants from a Fed chair- lower interest rates. During the earlier search, he said he would not have picked Warsh if he had favoured rate hikes.
The comments underline Trump’s political bet—that Warsh, if confirmed, can juice growth ahead of midterm elections that are typically brutal for sitting presidents.
But confirmation may not be straightforward. Senator Thom Tillis, a retiring Republican from North Carolina, has vowed to block Fed confirmations as long as Trump’s administration continues a Justice Department probe into Powell and a Fed building renovation project.
When Kudlow asked whether the DOJ investigation was worth holding up Warsh’s nomination, Trump shrugged.
“I don’t know. We’ll have to see what happens,” he said. “I’ve been fighting Tillis for a long time—so much so that he ended up quitting.”
Trump appeared unconcerned about delays. “If it happens, it happens,” he said.
The remarks also set up a high-wire act for Warsh. Trump’s confidence suggests little worry about inflation—even though growth anywhere near 15% would typically send prices soaring.
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Inflation has already proven stubborn, and Fed officials have pencilled in just one rate cut for 2026, according to projections released in December, even as investors continue to expect two cuts this year.
Powell, reappointed under Joe Biden, has increasingly drawn Trump’s ire. Trump has pushed aggressively for lower rates and repeatedly questioned the Fed’s independence—breaking with decades of presidential precedent.