President Donald Trump announced on Friday his nomination of Kevin Warsh to serve as the next Chairman of the Federal Reserve. Warsh will succeed Jerome Powell, whose term is set to expire this May. The President praised Warsh on Truth Social, calling him a "central casting" choice who will never let the country down.
"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 wrote. The nomination comes at a turbulent time for the central bank. The Federal Reserve currently faces a criminal probe into Powell and a Supreme Court battle over its independence.
If confirmed by the Senate, Warsh will take over the nation’s most powerful economic policymaking position. He will have direct influence over interest rate decisions and the ongoing fight against inflation. Business leaders have already lauded the choice as a pivotal moment for American economic and energy policy.
Warsh is not an economist by training, bringing a background in law and finance to the role. He previously served as the youngest person on the Fed’s board starting in 2006. During the 2008 financial crisis, he was recognized as the central bank’s key liaison to Wall Street.
The President has frequently made Jerome Powell a lightning rod for criticism over high interest rates. Trump argues that cutting rates could save the nation "hundreds of billions of dollars" in borrowing costs. Tensions between the two have often taken on a personal tone as the cost of living remains a top concern.
Chevron CEO Mike Wirth described Warsh as "uniquely prepared" in judgment and temperament for the role. Wirth pointed to rising power demands from AI and energy security as critical challenges for the next Fed Chair. Warsh previously served in the Bush administration before his tenure on the Fed board.
Warsh was a top contender for the role back in 2017 before Trump ultimately chose Powell. More recently, his name was in the mix for Treasury Secretary before the President selected Scott Bessent. Other potential candidates for Fed Chair included Kevin Hassett, Christopher Waller, and Rick Rieder.
The Federal Reserve’s decisions on borrowing costs shape the day-to-day affordability of mortgages and car loans. Trump’s "affordability agenda" relies heavily on a central bank that is willing to lower rates. With Warsh at the helm, the administration hopes for a more cooperative approach to monetary policy.