Trump Eyes 15% Growth Target with Kevin Warsh as Fed Chair Nominee

President Donald Trump has made a bold economic projection, asserting that his nominee for Chair of the Federal Reserve, Kevin Warsh, could drive U.S. economic growth to a staggering 15%. The remarks, made during an interview with Fox Business, have sparked debate among economists who describe the target as "extremely ambitious."

Trump lauded Warsh as a "highly competent" individual, revealing that Warsh had been his second choice during previous selection cycles. He also took the opportunity to critique the current leadership, describing his past appointment of Jerome Powell as a "big mistake" and a "terrible error," reportedly influenced by former Treasury Secretary Steven Mnuchin.

Ambitious Targets vs. Historical Norms While it was not explicitly clear if the 15% figure referred to annual GDP growth or another metric, the target stands in stark contrast to historical data. The U.S. economy, projected to grow by 2.4% in 2026, has averaged roughly 2.8% growth over the past five decades. A 15% growth rate is virtually unprecedented in modern history, except for anomalies like the post-pandemic reopening in late 2020.

The Strategy for Interest Rates The President emphasized that his primary requirement for a Fed Chair is a commitment to cutting interest rates. Trump stated clearly that he would not have chosen Warsh had Warsh supported raising rates. This focus on aggressive stimulus suggests Trump is betting on a rapid economic surge ahead of the mid-term elections, despite potential inflationary risks.

Federal Independence in Question Trump’s open pressure on the Federal Reserve and his explicit demands for rate cuts continue to challenge decades of norms regarding the central bank’s independence. As the 2026 fiscal year unfolds, the potential confirmation of Warsh is expected to signal a significant shift in U.S. monetary policy, prioritizing high growth and lower borrowing costs above traditional inflation-targeting models.