Washington: US President Donald Trump Nominates Kevin Warsh as Next Federal Reserve Chair, a former Federal Reserve governor, to serve as the next chair of the US central bank, concluding a high-profile search to succeed current Fed Chair Jerome Powell.
Trump has repeatedly criticized Powell for not reducing interest rates quickly enough and expressed confidence in Warsh’s leadership. Posting on his Truth Social platform, Trump said, “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. On top of everything else, he is ‘central casting,’ and he will never let you down.”
Powell’s term as Fed chair is set to expire in May. Warsh was chosen from a shortlist of four candidates, including current Fed governor Christopher Waller, BlackRock’s Rick Rieder, and Trump’s economic adviser Kevin Hassett.
If confirmed by the US Senate, Warsh will lead the central bank amid increasing political pressure from the Trump administration. Analysts warn that any erosion of the Fed’s independence could have significant consequences for the US economy and global financial markets.
A native of New York, Warsh previously served as a mergers and acquisitions banker at Morgan Stanley and has voiced criticisms of the Fed aligning with several Trump administration policies. He was considered for the Fed chair position during Trump’s first term but was not selected.
Trump’s administration has recently challenged Fed independence, including attempts to remove Governor Lisa Cook and investigations into Powell’s oversight of Fed headquarters renovations. Market observers emphasize that the new Fed chair must maintain the institution’s credibility while balancing inflation control and economic growth.
Warsh’s confirmation will test his ability to navigate the Fed’s dual mandate—stable prices and low unemployment—without political interference, while addressing inflationary pressures, a softening labor market, and ongoing debates over interest rates.