Trump nominates Kevin Warsh as new chair of Federal Reserve

Donald Trump has announced he will nominate former Federal Reserve governor Kevin Warsh to be the next chair of the Federal Reserve, succeeding Jerome Powell when Powell’s term ends in May 2026.

Who Kevin Warsh is

• Warsh previously served as a Fed governor from 2006 to 2011 and was the youngest person ever appointed to that role, joining the board at age 35.​

• He has a background on Wall Street and in Republican economic policy circles, including work at Morgan Stanley and roles advising the George W. Bush administration.

What the nomination means

• The nomination is not final yet: Warsh must be vetted and confirmed by the Senate before he can take over from Powell, so there could be a drawn‑out confirmation fight.

• Trump has been sharply critical of Powell over interest‑rate policy, and choosing Warsh is widely seen as an attempt to shift the Fed toward lower rates and somewhat closer alignment with the White House.

Possible impact on Fed policy

• Warsh has argued for deeper interest‑rate cuts and has criticized the current Fed for not fully accounting for productivity and technology’s role in reducing inflationary pressures.​

• He also favors a smaller Fed balance sheet and lighter banking regulation, which could mean looser rules for banks but potentially more market volatility if investors worry about the Fed’s independence.

Why markets and economists care

• The Fed chair has major influence over borrowing costs across the economy, including mortgages, car loans, and credit‑card rates, so any perceived change in stance can move markets quickly.​

• Early reactions from many economists are cautiously measured: some see Warsh as experienced and market‑savvy, but there is concern that closer political pressure from the White House could undermine the Fed’s credibility on inflation.​