White House Nominates Kevin Warsh As Fed Chair Amid Powell Probe
Nomination hits the Senate amid a DOJ subpoena over a $2.5 billion Fed renovation and geopolitical and tariff shocks that could complicate any push for rate cuts.
PBS NewsHourWhite House formally nominates Kevin Warsh to be next Federal Reserve chair
ABC NewsWhite House formally nominates Warsh to be Federal Reserve chair
CNBCTrump officially nominates Kevin Warsh as Fed chair to replace Jerome Powell
CNNWith his war in Iran, Trump just made the next Fed chair’s job even harder | CNN Business
Just the NewsTrump formally nominates Kevin Warsh to replace Powell as Fed Chair
Overview
The White House formally nominated Kevin Warsh to be the next Federal Reserve chair, and the nomination was forwarded to the Senate on Wednesday.
Powell disclosed on Jan. 11 that the Justice Department subpoenaed the Fed over his Senate testimony about a $2.5 billion building renovation.
Sen. Thom Tillis said he will oppose confirming Warsh until a criminal investigation of Jerome Powell is resolved.
Tillis said he would vote to block Warsh in the Senate Banking Committee, and if all Democrats on the committee oppose him the nomination would not advance to the full Senate.
The committee may hold hearings, and economists warned that the war with Iran, higher gasoline prices and tariff uncertainty could complicate any push by a Warsh-led Fed for rate cuts.
Analysis
Center-leaning sources frame the story as a politicized clash over the Fed, editorially emphasizing allegations of retaliation and Trump's past efforts to oust Fed allies. They foreground Powell's claim of retaliatory probes and the Cook firing attempt, use evaluative phrasing like "seen as motivated by his ire," and omit robust defenses of Trump or DOJ.
FAQ
Kevin Warsh is a former Federal Reserve Governor from 2006 to 2011, the youngest ever appointed, who helped navigate the 2008 financial crisis. He also served as a top economic advisor in the Bush Administration and was a Morgan Stanley executive.[1]
President Trump announced his intention to nominate Warsh on January 30, 2026, to succeed Jerome Powell whose term as Fed Chair ends in May 2026. The formal nomination was submitted to the Senate on March 4, 2026, pending confirmation.
The Justice Department subpoenaed the Fed on January 11 regarding Powell's Senate testimony about a $2.5 billion building renovation project.[story]
Senator Thom Tillis stated he will oppose confirming Warsh until the criminal investigation into Jerome Powell is resolved, potentially blocking the nomination in the Senate Banking Committee.[story]
Reactions are mixed: many economists and business leaders view him as qualified with strong experience, while some Wall Street investors and critics like Paul Krugman express concerns over his hawkish past and potential policy shifts.[2]
