Trump Picks a Reinvented Warsh to Lead the Federal Reserve

President Donald Trump said he intends to nominate Kevin Warsh to be the next chair of the Federal Reserve, according to a post on his Truth Social platform. Warsh, who served on the US central bank’s Board of Governors from 2006 to 2011 and has previously advised Trump on economic policy, would succeed Jerome Powell when his term at the helm ends in May. It marks a comeback for Warsh, 55, whom the president passed over for the top job in 2017 when he selected Powell. Jonathan Tamari, Senior Congress Reporter for Bloomberg Government joins to discuss.

Donald Trump named Kevin Warsh to be the next chair of the Federal Reserve, ending months of speculation over who’d take charge of US interest rates as the president pushes for big cuts.

Trump elevated Warsh, who’s advised him on economic policy and previously served as a Fed governor, to succeed Jerome Powell when his term at the helm ends in May. It marks a comeback for Warsh, 55, who’s called for a major overhaul of the Fed but was passed over for the top job in 2017 when Trump opted for Powell.

If confirmed by the Senate, Warsh will take the reins at a time when many economists and investors see the Fed’s traditional insulation from elected officials as being under threat from the White House. Warsh aligned himself with Trump in 2025 by arguing publicly for lower rates, going against his longstanding reputation as an inflation hawk.

“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 on his Truth Social platform. “On top of everything else, he is ‘central casting,’ and he will never let you down.”

Speaking to reporters later Friday, Trump — who’s repeatedly blasted the Powell Fed for not lowering rates fast enough — said he had not asked Warsh to commit to cuts.

“No, but we talk about it, and I’ve been following him, and I don’t want to ask him that question,” Trump said. “I think it’s inappropriate, probably.” The dollar held gains and US stock futures remained lower after Trump confirmed reports he would pick Warsh. Despite his recent backing for rate cuts, traders see Warsh as ultimately more inclined to guard against rising price pressures given how much he worried about rising inflation when at the Fed.

“The two big questions are who’s the real Kevin Warsh and does that evolve?” said Michael Feroli, chief US economist at JPMorgan Chase & Co. “I presume at the outset he is going to be dovish, but does that persist as we move forward a year or two or more?”

Warsh is currently an adviser at Stanley Druckenmiller’s Duquesne Family Office, a fellow at the conservative Hoover Institution think tank and a lecturer at Stanford Business School.

In a months-long selection process, Warsh ended up prevailing over fellow finalists Christopher Waller, a current Fed governor; Kevin Hassett, the National Economic Council director; and BlackRock Inc. executive Rick Rieder. Trump lauded those three in a post saying “they all would have been outstanding, and have a great and unlimited future with “TRUMP.”

Warsh’s Senate confirmation may also be complicated by a recently-announced Department of Justice probe into the central bank. On Jan. 9, the Fed received subpoenas regarding Powell’s 2025 congressional testimony about a building renovation project. Powell issued an extraordinary videotaped statement decrying the probe, and several Republican lawmakers came to the central bank’s defense. One of them, North Carolina’s Thom Tillis, pledged to withhold support for any Fed nominee until the legal matter was settled.

Following Trump’s announcement on Friday, Tillis said on social media that he saw Warsh as a “qualified nominee with a deep understanding of monetary policy.” However, he made clear he would not back Warsh’s nomination “until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved.”

Tillis is a member of the Senate Banking Committee, which will vet the nomination. Tim Scott, who chairs that panel, said he looks forward to “leading a thoughtful, timely confirmation process.”

Trump shrugged off the potential confirmation hurdle.

“If he doesn’t approve, we’ll just have to wait till somebody comes in that will approve it, right?” Trump said of Tillis. The senator’s term ends in January 2027 and he’s not running for re-election.

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