Donald Trump said on April 15 that interest rates would fall as soon as Kevin Warsh takes over as chair of the Federal Reserve. The remark was blunt. It came without any timeline qualifiers or policy conditions, making it more direct than comments delivered a day earlier by Treasury Secretary Bessent.
On April 14, Bessent told Reuters that he wanted Warsh in place quickly and said the next rate-cutting cycle should be led by the new chair once he takes office. Trump followed that message with a much sharper line the next evening, putting fresh attention on the upcoming Senate hearing.
April 21 hearing now in focus
According to the source material, Warsh’s Senate confirmation hearing is scheduled for April 21 at 10:00 a.m. before the Senate Banking Committee. Trump’s latest statement appears aimed squarely at that moment.
Trump also said that if Jerome Powell does not resign, he will fire him. Powell’s current term expires in May. Still, Warsh’s path is not clear of resistance. Republican Senator Thom Tillis has said publicly that he wants to wait for the Justice Department’s investigation involving Powell before deciding whether to support Warsh’s confirmation.
Markets are not pricing an immediate cut
The market is showing a different view. CME FedWatch data cited in the report indicates traders are pricing only two 25-basis-point cuts in all of 2026, with those moves expected in October and December. There is no pricing for a near-term cut.
The 2-year U.S. Treasury yield, near 4%, points in the same direction. Traders do not appear to believe the narrative of an imminent rate reduction. Political messaging has become more explicit, but rate markets have yet to move with it.