Trump Poised to Name Kevin Warsh as Next Federal Reserve Chair, Sources Say
WASHINGTON — The Trump administration is in the final stages of preparing to nominate Kevin Warsh, a former Federal Reserve governor, as the next chair of the U.S. central bank, according to multiple sources briefed on the matter. The announcement, expected Friday morning, would place a known but controversial figure at the helm of the world's most influential monetary institution at a critical economic juncture.
President Donald Trump confirmed Thursday that he would reveal his choice the following day, teasing that the nominee was a familiar name in financial circles. "This is someone who could've been there a few years ago," Trump remarked, a clear reference to Warsh, whom he passed over in favor of Jerome Powell in 2017.
The news, first reported by Bloomberg, sent immediate ripples through financial markets. U.S. stocks dipped while Treasury yields and the dollar climbed, reflecting investor anticipation of a potentially more hawkish stance under Warsh compared to the recent Powell era. Precious metals, often seen as a hedge against loose monetary policy, declined.
Warsh, 55, served on the Fed's Board of Governors from 2006 to 2011 during the global financial crisis. His potential nomination signals a significant shift. Historically an inflation hawk, Warsh has recently publicly aligned with President Trump's preference for lower interest rates, arguing for more aggressive easing to sustain economic growth.
This apparent evolution in his stance appears to have been a key factor in his selection. Trump has consistently sought a Fed chair sympathetic to his growth-first agenda, especially after the central bank held rates steady this week following three cuts in late 2025. If confirmed by the Senate, Warsh would succeed Powell, whose term ends in May.
Other candidates reportedly on the shortlist included National Economic Council Director Kevin Hassett, Fed Governor Christopher Waller, and BlackRock executive Rick Rieder. The sources cautioned that until a formal announcement is made, the decision remains subject to change. The White House and Warsh did not immediately respond to requests for comment.
Analysis & Reaction
The choice of Warsh would represent a homecoming for a figure deeply embedded in Washington's financial policy machinery but also a gamble. His experience during the crisis is seen as a major asset, yet his recent vocal support for Trump's economic views has drawn scrutiny over the Fed's future independence.
We asked for initial reactions from our readers:
Michael R., a portfolio manager in Chicago: "This is the stability markets were hoping for. Warsh knows the institution inside out, and his crisis experience is invaluable. The initial market wobble is just knee-jerk; the long-term signal is one of credible, experienced leadership."
Dr. Anya Sharma, economics professor at Georgetown: "The concerning aspect is the apparent *quid pro quo*. Warsh's public shift toward the president's low-rate stance just months before being tapped raises profound questions about intellectual independence. The Fed's credibility is its primary tool, and that is now under a cloud."
Janice T., a small business owner from Ohio: "Finally! Someone who gets that high rates are choking Main Street. Powell moved too slowly. We need someone bold to keep this recovery going, and if that means shaking up the old club at the Fed, then good."
David L., a former Fed analyst now with a think tank: "This is a profoundly political and dangerous pick. It blatantly rewards loyalty over principle. Warsh's hawkish record is being whitewashed overnight. The message is clear: fall in line with the President's views, and you'll be rewarded. The institutional integrity of the Fed is at stake here."
— Reporting by Justin Sink, Nancy Cook, Michael McKee, Silla Brush and Paul Dobson.