President Trump announces that he nominates former Federal Reserve Governor Kevin Warsh to serve as the next chair of the Federal Reserve, succeeding Jerome Powell when his term ends in May.
The announcement on Friday concludes a months-long search for a new Fed chair, one of the most influential economic positions in the world. Trump has publicly criticized Powell, whom he appointed during his first term, for not cutting interest rates as quickly as he wanted.
“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the great Fed Chairmen, maybe the best,” Trump wrote on Truth Social. “On top of everything else, he is ‘central casting,’ and he will never let you down.”
Warsh, 55, is considered a compromise candidate. He is known to be aligned with Trump and has recently called for lower interest rates, though he is not expected to pursue the more aggressive easing proposed by other potential candidates.
The nomination is expected to face a challenging Senate confirmation process. Lawmakers may scrutinize Warsh given Trump’s public comments and the Department of Justice’s recent decision to open a criminal investigation into Powell. Critics argue Trump’s actions threaten the Federal Reserve’s independence by pressuring it to follow his policy preferences.
Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, criticized the nomination, calling it part of Trump’s attempt to seize control of the Fed.
She also cited the investigations into Powell and Trump’s effort to remove Fed Governor Lisa Cook. “No Republican purporting to care about Fed independence should agree to move forward with this nomination until Trump drops his witch-hunt,” Warren said.
Republican Senator Thom Tillis said he would not support confirming any nominee until the DOJ probe into Powell concludes, emphasizing that Fed independence is non-negotiable. Some Republicans, however, welcomed the nomination. Senator Bill Hagerty said Warsh is well-suited to lead the Fed and focus the central bank on its core mandate.
It remains uncertain whether Powell will step down immediately if Warsh is confirmed or serve out his term. Traditionally, a Fed chair leaves office once a successor is appointed, but political considerations could affect that timeline.
Background on Kevin Warsh
Warsh is currently a fellow at the Hoover Institution and a lecturer at the Stanford Graduate School of Business. He served on the Federal Reserve’s board from 2006 to 2011 and was the youngest governor in the Fed’s history at age 35. He previously worked as an economic aide under President George W. Bush and as an investment banker at Morgan Stanley.
Warsh has historically supported higher interest rates to curb inflation but has recently advocated for lower rates. He has been critical of the current Fed leadership, calling for “regime change” and criticizing Powell for engaging in issues such as climate change, which Warsh views as outside the Fed’s mandate.
His family connections include his father-in-law, Ronald Lauder, heir to the Estée Lauder fortune and a longtime donor and confidant of Trump.
Analysts say Warsh’s experience makes him a candidate likely to be well-received by financial markets. Al Jazeera’s Kimberly Halkett noted that while Warsh may initially follow Trump’s requests, his long-term approach as Fed chair could mirror Powell’s focus on independence and data-driven policy decisions rather than political pressures.
