Donald Trump has announced Kevin Warsh as his nominee for the next chair of the Federal Reserve, selecting a former governor who has been an outspoken critic of the central bank. The move ends months of speculation as the president sought to tighten his influence over monetary policy, repeatedly calling for interest rate cuts. Jerome Powell's term as chair is set to end in May.
Writing on Truth Social, Trump praised Warsh, saying he has "no doubt that he will go down as one of the GREAT Fed Chairmen." Warsh, 55, has deep ties to Wall Street and previously interviewed for the role in 2017. The nomination requires Senate confirmation, where Republicans hold a narrow 53-47 majority. However, Senator Thom Tillis of North Carolina has vowed to block any Fed nominee until a federal criminal investigation into Powell is resolved.
Warsh served as a Fed governor from 2006 to 2011, including during the global financial crisis. Since resigning over the post-crisis stimulus, he has criticised the institution, arguing that central bankers should not be treated as "pampered princes" and that the Fed regularly "opines on matters outside its remit." He has warned about inflation risks but also echoed Trump's critique of the Fed being too slow to cut rates.
Financial markets reacted mildly to the news, with the dollar strengthening 0.5% against a basket of currencies, while gold fell 9.1% and silver dropped 26.7%. Wall Street's S&P 500 was down 0.5%. Stephen Brown of Capital Economics described Warsh as a "relatively safe choice," easing fears of a more partisan pick. Mark Carney, the Canadian prime minister and former Bank of England governor, called Warsh "a fantastic choice."
Warsh is currently a lecturer at Stanford Graduate School of Business and holds roles at UPS, Coupang, and the Duquesne Family Office. He is married to Jane Lauder, granddaughter of Estée Lauder. Other candidates for the chair had included Kevin Hassett and Christopher Waller.
