1 of 7 | Kevin Warsh speaks during a press conference announcing the publication of the Warsh Report at the Bank of England in London, in 2014. President Donald Trump has announced Kevin Warsh as his nomination for the next chair of the Federal Reserve. File Photo by Will Oliver/EPA
President Donald Trump announced Friday that he has nominated Kevin Warsh to be the next chair of the Federal Reserve Board, replacing Jerome Powell.
Powell’s term as chair ends in May, but he still has two years as a Fed governor. Usually, chairs resign their governor terms after their chair term ends. But it’s unknown if he will, following the pressure campaign to lower interest rates by Trump.
Trump announced the pick on Truth Social Friday.
“I am pleased to announce that I am nominating Kevin Warsh to be the CHAIRMAN OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. Kevin currently serves as the Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution, and Lecturer at the Stanford Graduate School of Business. He is a Partner of Stanley Druckenmiller at Duquesne Family Office LLC,” the president said.
He then listed more highlights from Warsh’s resume.
“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. On top of everything else, he is ‘central casting,’ and he will never let you down. Congratulations Kevin! PRESIDENT DONALD J. TRUMP,” he said.
Warsh served on the Fed’s board for five years, beginning in 2006, named by President George W. Bush.
Powell was picked by Trump during his first term in office and nominated again for a four-year term by President Joe Biden in May 2022.
Since returning to the White House, Trump has battled Powell over the federal funds rate, pushing the chair to lower it through insults and threats.
Though Trump insists inflation is down, inflation was at 2.8% in November, which is why the Fed has been hesitant to lower interest rates. The Fed’s target rate is 2%.
Trump has also targeted Powell over his handling of the $2.5 billion renovation of two Federal Reserve buildings. The Department of Justice has opened an investigation into the renovation, and Powell has called the probe a “pretext” to remove him.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation,” Powell said Jan. 11.
Sen. Thom Tillis, R-N.C., said he would block any Fed nominee until a Justice Department investigation is complete.
“Kevin Warsh is a qualified nominee with a deep understanding of monetary policy. However, the Department of Justice continues to pursue a criminal investigation into Chairman Jerome Powell based on committee testimony that no reasonable person could construe as possessing criminal intent,” Tillis said Friday on X.
“Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable,” Tillis said. “My position has not changed: I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved.”
Sen. Tim Scott, R-S.C., said he supports the nomination and praised Warsh’s “deep knowledge of markets and monetary policy that will be essential in this role.”
″The Federal Reserve’s decisions touch every American household, from mortgage rates to retirement savings, and President Trump has been clear that bringing accountability and credibility to the Federal Reserve is a priority, and his nomination of Kevin Warsh reflects that focus,” CNBC reported Scott said.
Trump’s attempt to remove Fed governor Lisa Cook is under consideration by the U.S. Supreme Court. The president can remove a governor for cause according to the Federal Reserve Act. The Trump administration alleges that Cook committed mortgage fraud, which she denies. Her attorneys argue that the reason for her firing does not meet the threshold for cause.
This week in Washington
President Donald Trump walks on the South Lawn of the White House after arriving on Marine One on Tuesday. Trump threw his support behind a legislative proposal that would expand sales of higher-ethanol E15 gasoline as he looked to build support for his economic record with a rally in Iowa. Photo by Kent Nishimura/UPI | License Photo
