Trump nominates Kevin Warsh to chair Federal Reserve after Powell’s term ends
US President Donald Trump announced on social media Friday the candidacy of Kevin Warsh, a former official on the Federal Reserve’s Board of Governors, to head the US central bank.
Trump’s announcement brings down the search for a successor to Jerome Powell, whom the president has long criticized for not cutting interest rates faster.
“I’ve known Kevin for a long time, and I have no doubt he’s going to be one of the greatest Fed chairmen, probably the best of all time… Above all, he is the right person, and he will never disappoint you,” Trump wrote on Truth Social.
Trump’s choice of nominee puts an end to a race that has been locked in four candidates: Warsh, Christopher Waller, an official on the Federal Reserve Board of Governors, Rick Reeder of BlackRock, and Kevin Hassett, Trump’s chief economic adviser.
If confirmed by the US Senate, Warsh will take over at a time when the Trump administration has sharply stepped up pressure on the central bank and raised concerns about its independence, prompting experts to warn of its potential repercussions for the world’s largest economy.
Warsh, from New York, recently stepped up his criticism of the Federal Reserve, declaring his support for many of Trump’s policy positions.
Warsh was previously a banker specializing in mergers and acquisitions at Morgan Stanley.
In his first term, Trump considered nominating Warsh to head the Federal Reserve — succeeding Janet Yellen — but ultimately chose Jerome Powell.
As Trump continues to call for interest rate cuts to stimulate the economy, all eyes will turn to Warsh’s defense of the central bank’s independence in the face of political pressure.
Trump sought to remove Federal Reserve Board Governor Lisa Cook over allegations of mortgage fraud, sparking a legal battle that is likely to be crucial in determining how much power the president has to fire top central bank officials.
The Justice Department also launched an investigation into Powell over maintenance and renovation work at the bank’s headquarters, which Powell described as a threat to his independence.
