President Trump Nominates Kevin Warsh as Next Federal Reserve Chair
On Friday, President Donald Trump ended months of speculation by announcing the nomination of Kevin Warsh, a former Federal Reserve governor, to succeed Jerome Powell as chair of the U.S. central bank. This change in leadership is set to take place when Powell’s term expires in May 2026.
Currently a fellow at the Hoover Institution and a lecturer at Stanford Graduate School of Business, Warsh, 55, brings a wealth of experience to the role. He served as a Fed governor from 2006 to 2011, a tenure that included the 2008 financial crisis. Trump expressed high confidence in his nominee, stating, “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.“
Despite Trump’s endorsement, Warsh’s path to confirmation is fraught with challenges. Republican Senator Thom Tillis has vowed to oppose any Fed nominee until the resolution of the Justice Department’s investigation into current Chair Powell, which he deems politically motivated. Meanwhile, Democratic Senator Elizabeth Warren has criticized the nomination as an attempt by Trump to “seize control” of the central bank.
The Federal Reserve has maintained interest rates at 3.5%-3.75%, despite Trump’s repeated calls for more aggressive cuts. The outcome of Warsh’s nomination and its potential impact on these rates remains to be seen.
Source: CNBC