Trump Nominates Kevin Warsh as Federal Reserve Chair
President Trump announced Kevin Warsh as his nominee to succeed Jerome Powell when Powell’s term ends in May, posting the pick on Truth Social.
Overview
President Donald Trump announced on Friday morning that he will nominate Kevin Warsh to be a governor of the Federal Reserve Board and the next chair, posting the selection on Truth Social and calling Warsh "one of the GREAT Fed Chairmen," according to the president's post.
The nomination comes as Jerome H. Powell’s four-year term as Fed chair ends in May and amid a Justice Department probe into renovation cost overruns at Federal Reserve headquarters that Powell has said could threaten the Fed's independence, according to Powell's public remarks.
Treasury Secretary Scott Bessent led the search that produced four finalists, and former Fed governor Kevin Warsh — who served on the Fed from Feb. 2006 to March 2011 — was chosen from a shortlist that included Kevin Hassett, Christopher Waller and Rick Rieder, according to White House briefings and administration officials.
Sen. Thom Tillis, R-N.C., said he will withhold support for Warsh's confirmation until the Justice Department probe into Powell is resolved, and Senate Majority Leader John Thune acknowledged that Tillis' opposition could imperil confirmation in the closely divided Senate, according to statements from both senators.
If confirmed, Warsh would take the helm in May and would face the challenge of convincing the Federal Open Market Committee to cut short-term rates amid inflation that remained at 2.7% in December, economists at Deutsche Bank warned, and Powell could remain on the Fed's board through Jan. 2028, potentially limiting Trump's ability to reshape the board.
Analysis
Center-leaning sources frame the nomination as a competent, Wall Street–friendly choice that nevertheless heightens risks to the Fed’s independence. Editorial emphasis—highlighting praise from Gary Cohn, Trump’s public pressure and subpoenas, plus expert warnings about market volatility and intra‑Fed skepticism—creates a tension between qualifications and political threat.
Sources (85)
FAQ
Kevin Warsh is a former Federal Reserve Governor (2006-2011), who served during the 2008 financial crisis as liaison to Wall Street and G20 representative. He previously worked at Morgan Stanley, advised President George W. Bush on economic policy, and currently is a fellow at the Hoover Institution and partner at Duquesne Family Office.
Warsh was chosen from a shortlist including Kevin Hassett, Christopher Waller, and Rick Rieder, led by Treasury Secretary Scott Bessent. Trump praised him as 'one of the GREAT Fed Chairmen' on Truth Social, valuing his Fed experience, market credibility, alignment on lower rates, and Republican ties.
Warsh would need to convince the FOMC to cut short-term rates amid 2.7% inflation in December. He faces Senate confirmation hurdles, including opposition from Sen. Thom Tillis until a Justice Department probe into Fed headquarters overruns is resolved, amid a closely divided Senate.
Warsh was known as an interest-rate hawk during his Fed tenure, favoring higher rates for inflation control. Recently, he has supported lower rates, stating 'Tariffs are not inflationary' and calling for Fed 'regime change', though he opposed a half-point cut in September 2024.
Jerome Powell's term as Fed Chair ends in May 2026. If confirmed, Warsh would take over then, while Powell could remain on the Fed Board until January 2028.
History
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