President Donald Trump announced Friday that he is nominating Kevin Warsh to serve as the next chair of the Federal Reserve, ending months of intense speculation over who would replace current Chair Jerome Powell.
In a post on social media, Trump revealed his selection of Warsh, a former Fed governor, to lead the central bank when Powell’s term as chair expires in May. The nomination requires confirmation by the U.S. Senate.”
Trump interviewed several high-profile candidates before settling on Warsh. Among those considered were top White House economist Kevin Hassett, BlackRock executive Rick Rieder, and current Fed Governor Christopher Waller. The decision comes amid ongoing tensions between the White House and the Fed, particularly over interest rate policy, with Trump repeatedly calling for lower rates to support economic growth.
Warsh, 55, brings extensive experience in monetary policy and finance. He served as a member of the Federal Reserve Board of Governors from 2006 to 2011, having been nominated by President George W. Bush, where he was one of the youngest governors in the institution’s history. During his tenure, he participated in the Fed’s response to the 2008 financial crisis.
Currently, Warsh works at the Duquesne Family Office, the investment firm of renowned investor Stanley Druckenmiller. He is also a fellow at Stanford University’s Hoover Institution, a conservative-leaning think tank. Warsh has publicly expressed support for reducing interest rates, aligning with Trump’s stated preferences for more accommodative monetary policy to stimulate the economy.
The nomination revives a familiar name from Trump’s first term. In 2017, Warsh was considered for the Fed chair position but was ultimately passed over in favor of Powell.
If confirmed, Warsh would take the helm of the world’s most influential central bank at a time when the Fed has faced criticism from the administration for its handling of interest rates and perceived resistance to political influence. Warsh has been described in various reports as a critic of certain aspects of the Fed’s recent approach, though he has also defended the institution’s independence in the past.
Market observers are closely watching the pick, given its potential implications for interest rates, inflation, and broader economic policy. The announcement has already sparked reactions across political and financial circles, with some praising Warsh’s experience and others raising concerns about the Fed’s future direction.
The Senate confirmation process is expected to be closely scrutinized, as it could shape the central bank’s trajectory for years to come. Warsh’s background in both Wall Street and government service positions him as a bridge between traditional central banking and the current administration’s economic priorities.This nomination marks one of the most significant economic appointments of Trump’s second term, signaling the president’s intent to exert greater influence over monetary policy. Further details on the confirmation timeline and potential hearings are anticipated in the coming weeks.
MacDailyNews Take: After the current befuddled chair, there’s tons of room for improvement at the Fed!
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Trump only wants to manipulate the Fed for political gain, and letting him (or any president) do so would be an outstanding shortcut to turn the USA into a banana republic.
Trump doesn’t want to reduce rates by .25 or even .5, he wants to cut rates to 1%, which would ignite explosive inflation.
Although Powell is chair, he is only one vote of 12 on the Fed, it takes a majority of votes to set rates. Trump acts like Powell is singlehandedly blocking his agenda, but the Fed is overwhelmingly voting against Trump’s wishes.
Although Powell is stepping down from the chair, he will still be on the Fed till January 31, 2028 and will have a vote.
Giving a single person the power to set monetary policy (or group of lackeys), would be one of the worst economic decisions the USA could make. Thankfully the Supreme Court seems ready to deny Trump that power. Trump use of tariff power is completely illogical, capricious, vindictive, and economically illiterate. Controlling monetary policy would be no different.
The fed is currently politically biased. Democrats get unreasonably great rates; Republicans get crappy rates.
Obama and Biden magically got 0% Fed rates (December 2008 – December 2015 and March 2020 – March 2022). This allowed Obama to double our federal debt with minimal pushback.
Outside these periods, the federal funds rate has never been at zero in modern U.S. history (since the Fed began targeting it in the 1950s). Before 2008, the lowest rate was 1.0% (2003–2004, post-dot-com bubble).
Trump gets 4%.
It is time to end this nonsense. Political hacks need to go. The fed is NOT independent. Such an entity would be unconstitutional.
So you want the Fed to allow Trump to double our federal debt with minimal pushback like they did with Obama? I’m not sure that’s a great argument.
Simple Google search reveals:
Interest rates during Trump’s first term hovered between .25% and 2.5%, hardly any reason to consider the Fed politically biased.
During Biden’s term, rates rose from .25% to 5.25%!!! The Fed raised rates on July 26, 2023 to 5.5%, hardly a move they would make before the upcoming election if they were biased towards the Democrats.
Trump only ever hires sycophant Yes men. He HATES people who disagree with him. He is addicted to flattery. Trump HATES Democrats because they stand up to him. Trump also HATES smart people because they disagree with his stupid ideas. He LOVES stupid voters aka Republicans because they agree with all his stupid idea and NEVER question his baseless claims.
“Returning Caller’s” ignorance is pure bliss in his/her world. END THE FED… it has been an unconstitutional end ever-growing parasitic blight on the USA. It is NOT an actual department of our gov’t, it is an agregation of wealthy elite private bankers who have aided in the destruction of the US dollar. Since it was supposedly approved by a small portion of the Congress in a private vote on Jekyll Island during the holiday week of Christmas — New Year in 1913 as they were treated to a lavish vacation by J.D.Rockefeller. Look it up in the excellent book “The Creature From Jekyll Island” and learn something. Since 1913 the buying power of the $$ had crashed by 98.5%. Guess who has had monopoly control of the currency since then; the FED and the debt-addicted liberal bankers who became U.S. Treasury heads: especially former CEOs of Goldman Sachs. Re-link the $ to gold!!
Trump loves stupid people because they just accept everything he says as the gospel truth. They never ask him to provide proof to support his baseless claims.
“Destruction of the US dollar?”
Trump is excited that the dollar is losing value.
““I think it’s great,” Trump told reporters in Iowa when asked about the currency’s decline. “Look at the business we’re doing. The dollar’s doing great.””
TDS GALORE….
Isn’t this guy on a list somewhere?
Same list as his future boss