Trump Nominates Former Governor Kevin Warsh as Federal Reserve Chairman
President Donald Trump has officially nominated former Federal Reserve Governor Kevin Warsh to serve as the next Chair of the Federal Reserve, positioning him to replace current Chair Jerome Powell when his term expires in May 2026. The announcement, made via Truth Social on Friday, January 30, 2026, signals a potential pivot in central bank leadership following months of public criticism directed at Powell by the President. Trump described Warsh as a candidate from “central casting” who would be “one of the great Fed Chairmen,” highlighting his previous tenure on the board and his deep ties to Wall Street.
Warsh, 55, served as the youngest governor in the Federal Reserve’s history from 2006 to 2011, playing a key role in the central bank’s response to the 2008 financial crisis. A former Morgan Stanley banker and current fellow at the Hoover Institution, Warsh has historically been viewed as an inflation hawk—someone who favors higher interest rates to keep prices stable. However, in recent months, he has publicly aligned closer to Trump’s economic philosophy, expressing openness to interest rate cuts and criticizing the Fed’s current “regime” for its handling of inflation. This shift has led to speculation among economists about whether his policy decisions would prioritize strict inflation control or the growth-focused monetary easing favored by the administration.
The nomination has already sparked significant debate and objections from political figures and market analysts. Senator Elizabeth Warren voiced strong opposition, warning that Warsh’s close relationship with Trump could threaten the Federal Reserve’s traditional independence from the executive branch. Critics point to Warsh’s past skepticism of quantitative easing—a tool often used to stimulate the economy—as a potential conflict with the President’s desire for lower rates and looser financial conditions. Furthermore, Warsh’s recent calls for a “regime change” at the Fed have raised concerns about potential volatility in bond markets and the stability of the U.S. dollar if he aggressively dismantles current policy frameworks.
Jerome Powell, whose term as Chair ends in May 2026, has been a frequent target of Trump’s ire, with the President previously labeling him “Mr. Too Late” for not cutting rates quickly enough. While Powell’s board membership runs until 2028, it is customary for Chairs to resign from the board upon the expiration of their leadership term. Warsh’s confirmation process in the Senate is expected to be contentious, as lawmakers scrutinize his evolution from a “hard money” advocate to a nominee backed by a President demanding rapid monetary stimulus. If confirmed, Warsh would inherit the complex task of navigating a “soft landing” for the U.S. economy while addressing the administration’s demands for immediate economic relief.
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