President Donald Trump has chosen Kevin Warsh, a former Federal Reserve Governor, to take over as Chair of the Federal Reserve from Jerome Powell, whose term ends in May 2026. Trump made the announcement on Truth Social, calling Warsh “one of the GREAT Fed Chairmen, maybe the best,” and pointing out his experience on Wall Street.
Kevin Warsh, who used to work for Morgan Stanley, became the youngest member of the Federal Reserve Board in 2006 and stayed until 2011. During the 2008 financial crisis, he was a key link between the Fed and Wall Street. He gave President George W. Bush advice on economics and has since spoken out against the Fed’s bigger role, its balance sheet of more than $6.5 trillion, and its rules that make it harder for businesses to get credit.
The nomination comes at a difficult time for the Fed, which is under investigation by the Justice Department, has to deal with questions about its independence, and is dealing with rising inflation that is putting Trump’s economic plans to the test. Warsh wants to shrink the Fed’s balance sheet so that interest rates can go down. This is similar to Trump’s call for looser policy, but Warsh also wants a “regime change” to focus on price stability.
The Senate Banking Committee will hold hearings on Warsh’s nomination before the full Senate votes on it. The vote could be delayed because of the ongoing Powell investigation and concerns from Republicans. If he is confirmed, he will be the second Fed chair in a row who doesn’t have a formal economics PhD. This will bring hawkish views on monetary policy.
