Trump set to name Kevin Warsh as next Fed Chair as Powell era nears its end
Kevin Warsh emerges as a top Fed chair contender. Image Source: Getty Images
President Donald Trump is expected to announce Kevin Warsh as his nominee for Federal Reserve chair, according to multiple people familiar with the decision, potentially ending months of speculation over who would replace Jerome Powell at the helm of the U.S. central bank.
Trump confirmed Thursday night that he had finalized his decision and would make a formal announcement on Friday, though he stopped short of naming his choice publicly. The president described the pick as “very respected” and “known to everybody in the financial world,” comments widely interpreted as pointing to Warsh.
Who Is Kevin Warsh? Former Fed Governor and Longtime Trump Contender
Kevin Warsh is a former Federal Reserve governor who served from 2006 to 2011 after being nominated by President George W. Bush. During his tenure, Warsh played a critical role in navigating the 2008 global financial crisis, giving him deep credibility in central banking and crisis management circles.
Warsh has remained a prominent figure in economic policy debates and has long been viewed as a hawkish voice on inflation and monetary discipline, a stance that aligns closely with Trump’s criticism of the Federal Reserve in recent years.
Trump’s Search for Powell’s Replacement Reaches Final Stage
The selection process to replace Jerome Powell began last summer with an initial list of 11 candidates, eventually narrowed to four finalists:
- Kevin Warsh
- Kevin Hassett (National Economic Council Director)
- Christopher Waller (Current Fed Governor)
- Rick Rieder (BlackRock CIO for fixed income)
Trump held in-person interviews with all four finalists. According to administration sources, Warsh’s meeting with Trump was viewed positively, with advisers noting that he “looked the part” and demonstrated command over monetary policy issues.
Prediction markets reflected this momentum. By Thursday evening, platforms such as Kalshi showed Warsh as an overwhelming favorite, with odds reaching nearly 80%.
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Why Kevin Warsh Fits Trump’s Vision for the Federal Reserve
Trump has repeatedly criticized Jerome Powell during his second term, accusing the Fed of holding rates too high and slowing economic growth. Warsh, though historically cautious on inflation, is seen as more aligned with Trump’s broader economic worldview than Powell.
Notably, Warsh was considered for the Fed chair role in 2017, before Trump ultimately selected Powell. Trump later expressed regret over that decision, making Warsh’s potential nomination feel like a long-delayed correction.
“A lot of people think this is somebody that could have been there a few years ago,” Trump told reporters.
Market and Policy Implications of a Warsh-Led Fed
If confirmed, Kevin Warsh’s appointment could mark a significant shift in Federal Reserve leadership style and policy tone. Investors are closely watching whether a Warsh-led Fed would:
- Reassess interest rate strategy
- Take a firmer stance on inflation
- Adjust communication with markets
- Align more closely with White House economic priorities
Markets were largely steady amid the news, with major indexes posting modest gains as investors awaited official confirmation.
What Happens Next in the Fed Chair Nomination Process?
Once Trump formally announces his nominee, Warsh will face Senate confirmation hearings, where lawmakers are expected to scrutinize his views on inflation, interest rates, and central bank independence.
Jerome Powell’s term as Fed chair expires in May, though he retains the option to remain on the Federal Reserve Board afterward.
FAQ
Who is Kevin Warsh?
Kevin Warsh is a former Federal Reserve governor who served from 2006 to 2011 and played a key role during the global financial crisis.
Is Kevin Warsh Trump’s pick for Fed chair?
Trump is expected to nominate Kevin Warsh, though the White House has said the decision is only final once officially announced.
Why is Jerome Powell being replaced?
Trump has repeatedly criticized Powell over interest rate policy and economic growth, creating a strained relationship during Trump’s second term.
What are Kevin Warsh’s views on inflation?
Warsh is generally considered inflation-conscious and has argued for disciplined monetary policy and long-term economic stability.
When will the new Fed chair be announced?
Trump has said the announcement will come Friday, following months of deliberation.
How could markets react to a Warsh nomination?
Markets are watching closely, as Warsh’s leadership could influence interest rates, inflation control, and Federal Reserve independence.
Was Kevin Warsh considered before?
Yes. Warsh was a finalist for the Fed chair position in 2017 before Trump selected Jerome Powell.
