The Federal Reserve is set for a new chapter as President Donald Trump announced Kevin Warsh as his pick to succeed Jerome Powell as Fed Chair.
The decision came early Friday, stirring anticipation across Wall Street and political circles alike.
In a post on Truth Social, Trump highlighted Warsh’s extensive credentials, noting his five-year tenure on the Board of Governors from 2006 to 2011.
Trump added a colorful endorsement, calling Warsh “central casting” and promising that he “will never let you down.”
Jerome Powell’s Term Winds Down
Powell’s current term is set to expire on May 15, 2026, with just two policy meetings left under his belt after this week’s session.
His tenure has been marked by public clashes with Trump over interest rate policy and the direction of the economy.
The end of Powell’s term closes a contentious period where tensions between the White House and the Fed often spilled into public view.
Trump has repeatedly criticized Powell on social media, calling him everything from a “knucklehead” to a “moron” over decisions to hold rates steady.
The Build-Up to the Announcement
The choice of Warsh wasn’t a total surprise.
At the premiere of First Lady Melania Trump’s film at the Trump-Kennedy Center on Thursday night, Trump hinted that his decision had been made.
He described his pick as “someone very respected, somebody known to everybody in the financial world” and suggested the nominee could have held the role years ago.
Observers quickly speculated it could be Warsh, who was considered for Fed Chair back in 2017.
Kevin Warsh’s Background
Warsh, now 55, has an impressive résumé.
He’s a scholar and lecturer at Stanford, a member of the international Group of 30, and part of the Congressional Budget Office’s Panel of Economic Advisers.
Remarkably, Warsh earned a seat on the Board of Governors at the Fed at just 35, making him the youngest-ever appointee to that position.
Analysts see his Fed experience as a key asset, and many in Wall Street believe he wouldn’t simply follow Trump’s directives without question.
Political Hurdles Ahead
Despite his strong credentials, Warsh’s nomination isn’t guaranteed.
Republican Senator Thom Tillis of North Carolina suggested to Politico that he might block the nomination until investigations into Powell’s tenure are concluded.
“I don’t have any problem with him trying to do it,” Tillis said in a podcast interview, referring to the president’s pick.
“I have a problem with people being quiet on our side when we definitely can stand in the breach and prevent it from happening. And that’s what I’m doing. That’s a typical tug and pull.”
What’s Next for the Fed?
Trump’s history with Powell shows a president eager to influence Fed policy, often publicly clashing with the Chairman over interest rate moves.
Warsh’s nomination will likely draw similar scrutiny as Congress and financial markets weigh his independence and track record.
As the nomination process unfolds, Wall Street and policymakers will watch closely to see if Warsh can navigate the role while balancing Trump’s expectations with the Fed’s mandate to stabilize the economy.
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