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Trump announces Kevin Warsh as new fed chair
President Trump announced Friday he is nominating Kevin Warsh as the next Federal Reserve chair.
President Donald Trump said Friday that he will nominate former Federal Reserve official Kevin Warsh to be the next chair of the Fed.
News of Warsh's appointment comes months before current chair, Jerome Powell, is set to end his final term in May.
RELATED: Trump calls for Federal Reserve to pull control from Jerome Powell
Though Powell will no longer be the Fed chair, he still makes up one of seven governing board members, which has a separate term that does not end until Jan. 31, 2028.
FILE-Kevin Warsh, former governor of the US Federal Reserve, during the International Monetary Fund (IMF) and World Bank Spring meetings at the IMF headquarters in Washington, DC, US, on Friday, April 25, 2025. The International Monetary Fund sharply …
"I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best," Trump posted on his Truth Social platform. "On top of everything else, he is ‘central casting,’ and he will never let you down."
Warsh's appointment requires Senate confirmation, with the Associated Press reporting that in the meantime, he would fill a seat on the Fed’s governing board that was temporarily occupied by Stephen Miran, a White House adviser who Trump appointed in September. Once on the board, Trump could then elevate Warsh to the chair position when Powell’s term ends in May.
Who is Kevin Warsh?
The backstory:
Kevin Warsh was a member of the Fed's board from 2006 to 2011. And he was also the youngest governor in history when he was appointed at age 35.
The 55-year-old is currently a fellow at the Hoover Institution and a lecturer at the Stanford Graduate School of Business.
During his tenure as governor, Warsh opposed some of the low-interest rate policies that the Federal Reserve pursued during and after the 2008-09 Great Recession. Warsh also expressed concern at that time that inflation would soon accelerate.
Will Powell stay on as a board member?
Big picture view:
If Powell stays on the board, it would deny President Donald Trump a chance to gain a majority, undercutting his administration’s efforts to seize greater control over what has for decades been an institution largely insulated from day-to-day politics.
If Powell decides to leave, Trump could nominate a fourth person to the board of governors and gain a majority.
A majority on the board would enable the White House to make sweeping changes to the Fed. Trump’s Treasury Secretary, Scott Bessent, has advocated numerous reforms to reduce the central bank’s influence in the economy and financial markets.
Trump’s majority on the Fed’s board could also remove some of the presidents of the 12 regional banks, who are members of the Fed’s rate-setting committee. The New York Fed president has a vote on the committee and four others vote on a rotating basis.
The Source: Information for this article was taken from the Associated Press.