Trump Taps Former Fed Governor Kevin Warsh to Helm Central Bank
In a move that could reshape U.S. monetary policy, former President Donald Trump announced Friday his nomination of Kevin Warsh, a former Federal Reserve governor and longtime critic of the central bank's current leadership, to be its next Chair.
"I have known Kevin for a long time, and have no doubt he will be one of the GREAT Fed Chairs, maybe the best," Trump stated in a post on Truth Social. "He is 'central casting,' and he will never let you down." The nomination, if confirmed, would see Warsh replace Jerome Powell, whose tenure Trump has repeatedly criticized.
Warsh, 54, is no stranger to the Marriner S. Eccles Building. Appointed by President George W. Bush, he served as a Fed governor from 2006 to 2011, acting as a crucial liaison between then-Chair Ben Bernanke and Wall Street during the 2008 financial crisis. His resume also includes roles as a special assistant to President Bush for economic policy, an executive secretary at the National Economic Council, and a stint in mergers and acquisitions at Morgan Stanley. He holds degrees from Stanford and Harvard Law.
This nomination marks a return to a familiar candidate for Trump, who interviewed Warsh for the position eight years ago before ultimately selecting Powell—a decision he later lamented. This time, Warsh prevailed over other reported finalists, including current Fed Governor Christopher Waller and former NEC Director Kevin Hassett.
The pick signals a potential sharp turn in Fed philosophy. Warsh has been a vocal critic of Powell's stewardship, particularly on inflation. In Wall Street Journal op-eds and media appearances, he has argued the Fed was slow to recognize post-pandemic inflationary pressures and is now holding back economic growth with overly restrictive policy. He rejects the notion that hot wage growth is a primary inflation driver, instead pointing to excessive government spending and money printing.
"We're in a housing recession right now," Warsh told Fox Business last year, framing interest rate policy as housing policy. "First-time homebuyers are having a hard time getting a house." He has also argued the Fed should view tariffs as one-off price shocks and has suggested the central bank is underestimating AI's potential to boost productivity and curb inflation.
The nomination has already drawn early, notable support. JPMorgan Chase CEO Jamie Dimon, at a private conference last December, called Warsh a great potential chair—a rare personal endorsement from the banking titan.
However, the path to confirmation is fraught. Warsh must face hearings in the Senate Banking Committee and a full Senate vote. Senator Thom Tillis (R-N.C.) has threatened to block any Trump Fed nominee until a Justice Department investigation into current Chair Powell is resolved, a stance that could complicate the process.
The financial world is now watching closely, weighing Warsh's experience against his pointed critiques of the institution he is poised to lead. His confirmation would likely herald a more accommodative stance on interest rates and a critical review of the Fed's regulatory footprint.
Market Voices React
Eleanor Vance, Chief Economist at Sterling Trust: "Warsh's institutional knowledge is undeniable. His crisis-era experience is a major asset. The real question is whether his strong, published criticisms of recent Fed policy will hinder his ability to build consensus on the Board."
Marcus Thorne, Hedge Fund Manager: "Finally! The Fed needs a reality check. Powell's crew missed inflation and has been crushing growth and housing for no good reason. Warsh gets that the problem was fiscal, not wages. Markets need clarity and lower rates, and he'll deliver."
Dr. Aliyah Chen, Professor of Economic History: "This is a deeply political nomination. Selecting a chair who so explicitly aligns with the President's desire for lower rates risks undermining the hard-won credibility of Fed independence. The confirmation hearings must rigorously examine this tension."
Gary Ridgely, Small Business Owner: "As someone trying to get a loan to expand my workshop, all this Fed drama is exhausting. Just tell me: will it be easier or harder to borrow money next year? This pick sounds like it might be easier, and that's what I care about."
Jennifer Schonberger is a veteran financial journalist covering markets, the economy, and investing.
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