Trump Poised to Name New Fed Chair on Friday, With Kevin Warsh Tipped as Front-Runner
WASHINGTON/TOKYO — President Donald Trump announced Thursday that he will reveal his choice for the next chair of the Federal Reserve on Friday, setting the stage for a pivotal leadership transition at the world's most influential central bank. Multiple sources now indicate that former Fed governor Kevin Warsh is the expected nominee, succeeding current Chair Jerome Powell whose term concludes in May.
Bloomberg News, citing people familiar with the deliberations, reported that the White House is preparing for Trump to nominate Warsh. The former governor, who served from 2006 to 2011, was seen at the White House for a meeting with the President on Thursday, fueling the speculation.
The impending announcement sent immediate, if measured, tremors through financial markets. Analysts suggest a Warsh nomination would be viewed as a signal of continuity and a guardrail for the Fed's cherished independence, a topic of intense debate during Trump's presidency. The U.S. dollar firmed on the news, as traders assessed the potential for a steady hand at the monetary policy helm.
Market Analysts Weigh In: The consensus among strategists is that Warsh, a well-known quantity to Wall Street, represents a "safe" choice. "The market's initial reaction—buying dollars—tells you this is seen as de-risking the appointment," said Rodrigo Catril, Senior FX Strategist at National Australia Bank in Sydney. "His past defense of Fed independence is crucial. This isn't a pick that suggests the Fed will become an arm of the White House."
Others cautioned against reading too much into short-term currency gyrations. "We've had a volatile week, and positioning ahead of a weekend—especially with geopolitical tensions simmering—often drives these moves as much as the news itself," noted Khoon Goh, Head of Asia Research at ANZ in Singapore.
Fictional Reader Reactions:
Michael R., a retired portfolio manager from Chicago: "Finally, some clarity. Warsh has the experience and the backbone. The last thing markets need is a political puppet at the Fed. This is a relief."
Sarah Chen, a fintech entrepreneur in San Francisco: "It's disappointing. This is just recycling the old guard. We needed someone with a bold vision for digital currency and modernizing the payment system, not another orthodox insider from the crisis era."
David P., a small business owner in Ohio: "Whoever it is, they better focus on keeping interest rates low. My expansion loan depends on it. All this talk about 'independence' doesn't pay my bills."
Professor Eleanor Vance, Economics, Columbia University: "The sharp reaction here is telling. Appointing Warsh isn't about radical change; it's about restoring a perceived veneer of stability and tradition after years of unprecedented political pressure on the institution. The real test will be the first time his policy view clashes with the President's tweet."
(Reporting by Rae Wee and Gregor Stuart Hunter in Singapore, and Kevin Buckland in Tokyo; Editing by Sumeet Chatterjee and Tom Hogue)