U.S. President Donald Trump has nominated Kevin Warsh to lead the Federal Reserve after the four-year term of current Chair Jerome Powell ends in May.
Warsh, a former Fed governor, was considered for the post during Trump’s first term. A vocal critic of the central bank, he is expected to support short-term interest rate cuts.
The nomination comes amid growing concerns over the Fed’s independence, following Trump’s repeated attacks on Powell in recent months. Powell reportedly angered Trump by not lowering rates quickly enough, while federal prosecutors recently launched a criminal investigation into Powell’s Senate testimony regarding Fed building renovations.
Warsh, who served as Fed governor from 2006 to 2011, has re-emerged as a potential candidate amid speculation about replacing Powell under political pressure. Trump announced the nomination on Truth Social, calling Warsh “one of the GREATEST Fed Chairs in history, perhaps the best.”
The appointment must still be confirmed by the Senate, potentially leading to delays. If confirmed, Warsh will assume leadership during a highly tense period, as economists and Wall Street investors closely monitor threats to central bank autonomy.
Who is Kevin Warsh?
Warsh, 55, is a Hoover Institution fellow and board member at UPS. Historically considered “hawkish,” favoring higher interest rates, he now signals support for near-term rate cuts. He has also advocated reducing the Fed’s balance sheet to influence short-term rates, though some analysts question his approach.
The Fed recently held rates steady despite White House pressure to cut. U.S. labor markets show signs of stabilization, but inflation remains above the 2% Fed target.
Warsh also has close family ties to Trump’s circle: he is married to Jane Lauder, from the Estée Lauder family, with billionaire Ronald Lauder as his father-in-law, a longtime Trump supporter.
Senator Thom Tillis has signaled opposition to Trump’s nominations until Powell’s legal issues are resolved. Trump has also targeted Fed Governor Lisa Cook for dismissal, though allegations against her are under Supreme Court review.
Warsh was considered one of four leading candidates, alongside White House economic advisor Kevin Hassett, Fed Governor Christopher Waller, and Wall Street bond expert Rick Rieder.
Markets responded cautiously to the nomination, with the U.S. dollar strengthening slightly and gold prices falling 6%. Analysts view Warsh as a relatively safe choice who could calm concerns over Fed independence while closely watched by investors.
