WSJ What’s News – “Trump Shakes Up Expectations on Who Will Be the Next Fed Chair”

Date: January 16, 2026
Host: Alex Osila
Featured Guest: Nick Timiraos (WSJ Chief Economics Correspondent)

Overview:

This episode delves into President Trump’s surprising signals regarding his decision on the next Federal Reserve chair, shifting market expectations and stirring political intrigue. The show also covers updates on economic policy proposals, geopolitical developments, and investigates the affordability of nutritious dinners in light of recent government claims.

Presidential Drama: The Contest for Fed Chair

Setting the Stage

• The top story is the unfolding search for the next Federal Reserve chair, a decision President Trump is treating with dramatic flair.
• The battle has been dubbed the “two Kevins” contest—between Kevin Hassett and Kevin Warsh—both of whom are influential economic figures.
• Trump publicly muses about keeping Kevin Hassett in his current job, fueling speculation that Kevin Warsh is now the front-runner.

Notable Quote

• President Trump, at a White House event (01:23):
  “You were fantastic on television today. I actually want to keep you where you are if you want to know the truth. Kevin Hassett is so good. I’m saying, wait a minute. If I move them, these Fed guys, certainly the one we have now, they don’t talk much. I would lose you. It’s a serious concern to me.”

The Fed Chair Race: Reality TV Style

• Nick Timiraos frames the search as an ongoing reality TV saga:
  (02:01) “Think about this as a reality TV show like The Apprentice – Fed Edition. … Trump always keeps us guessing, and this is no different.”
• As of today, Kevin Hassett’s frontrunner status is in doubt, likely leaving Kevin Warsh in “pole position.”
• Trump’s unpredictability makes the outcome highly uncertain.

Other Contenders

• Fed Governor Christopher Waller and BlackRock’s Rick Rieder are still technically in the running, as Trump is known to change his mind spontaneously.
• Decision timing has slipped; an announcement is expected within weeks as Fed Chair Jerome Powell’s term ends in May.

Political and Market Dynamics

Influence of DOJ Probe and Senate Scrutiny

• Hassett’s close relationship with Trump was initially seen as an advantage, but the DOJ probe into outgoing Fed Chair Powell has heightened sensitivities.
• There’s increased Senate focus on the next chair’s independence—a potential problem for candidates too closely tied to the president.
  Nick Timiraos (03:38):
  “The probe creates a problem, which is nobody likes this on Capitol Hill. They think it underscores the idea that Donald Trump is going to compromise the independence of the Fed.”

Possible Policy Shifts

• Both Kevins (Hassett and Warsh) would likely cut rates in 2026, echoing Trump’s public preferences, but the longer-term direction (2027–28) remains unclear.
  Nick Timiraos (04:34):
  “Most analysts … think that at least in 2026, both men would try to secure a couple more interest rate cuts, since that’s what Donald Trump has made so clear that he wants.”

Other Major Headlines

Economic Policy—New Housing Plan

• Trump to propose a plan to let Americans use 401(k) funds for down payments on homes, according to Kevin Hassett.
• Details remain unclear as current withdrawal rules differ between retirement account types.
  (05:11)

Geopolitics—Greenland and Tariffs

• Trump threatens tariffs on nations that don’t support his efforts to control Greenland, framing the island as vital to U.S. security.
  President Trump (05:53):
  “I may put a tariff on countries if they don’t go along with Greenland because we need Greenland for national security, so I may do that.”
• European nations respond by sending troops to Greenland, raising tensions.

US-Iran Relations

• U.S. imposes new sanctions on Iranian officials over protest crackdowns; death toll above 2,600 per human rights groups.

US-Venezuela Relations

• CIA Director visits Caracas for first time since Maduro’s ouster, signaling interest in “economic collaboration” while Venezuela’s leadership maintains ties with U.S. adversaries.

Immigration Enforcement Controversy

• Oglala Sioux tribe leaders claim federal agents arrested Native Americans in Minneapolis amid a broader enforcement push; Homeland Security can’t verify.

Market News & Business Updates

• Treasury yields rise on Trump’s Hassett comments; stocks largely unchanged.
• OpenAI will test ads in ChatGPT, but promises they won’t appear during sensitive topics or affect user privacy and content integrity.
• SCOTUS to review Bayer’s Roundup litigation.
• Mitsubishi acquires U.S. shale gas business for $5.2 billion.

Fact Check: Can Dinner Really Cost $3?

• Agriculture Secretary Brooke Rollins contends a healthy meal is achievable for $3.
• WSJ reporters Jared Mitovich and Rachel Wolfe put this claim to the test in Boston.

The Experiment

• Pursued USDA dietary guidelines: chicken breast, flour tortillas (couldn’t find corn), broccoli, and cheddar cheese as “one other thing.”
• Spent $26 total, but by portioning, reached a $2.91 meal.
• The meal met nutritional standards, but not expectations for satiety or taste.

Interview Highlights

• Jared Mitovich (10:53): “My one other thing was Vermont cheddar cheese… The ingredients that I purchased to put this $3 meal together ended up totaling me $26. Portioning it out to follow the secretary’s guidance did get us to a total of $2.91. I wouldn’t say it was the most filling meal. I wouldn’t say it was maybe the most flavorful.”
• On practicality:
  “It’s not always realistic if you’re time limited, limited by your geography, how close you are to a store… While [the USDA is] promoting more protein or healthier food, they’re staying cognizant of the fact that they need to make that food more accessible to lower income households in particular.” (11:35)

Timestamps for Key Segments

• 0:23-1:37 – Trump floats keeping Hassett at NEC; hints about Fed chair race
• 2:01-5:02 – Nick Timiraos analyzes Fed chair drama, Senate’s skepticism, policy implications
• 5:11 – Trump’s retirement fund proposal for housing
• 5:53-6:14 – Trump threatens tariffs over Greenland; European troop response
• 7:40 – Transition to economic news (ads, markets, Supreme Court)
• 10:25-12:07 – $3 dinner experiment with WSJ reporter Jared Mitovich

Memorable Moments and Quotes

• Nick Timiraos (02:01): “Think about this as a reality TV show like The Apprentice – Fed Edition.”
• President Trump (05:53): “I may put a tariff on countries if they don’t go along with Greenland because we need Greenland for national security…”
• Jared Mitovich (10:53): “I wouldn’t say it was the most filling meal. I wouldn’t say it was maybe the most flavorful. But that wasn’t really our goal.”

Summary

This episode captures the drama and unpredictability surrounding President Trump’s choice for the next Fed chair, discusses the political and market ramifications, covers key White House policy moves (from housing to Greenland), and critically examines the plausibility of the Administration’s claim about affordable, nutritious meals. Engaging interviews and sharp analysis make this a must-listen for anyone following U.S. economic and political developments as we move into 2026.