Trump nominates Kevin Warsh to succeed Jerome Powell as Federal Reserve chair

• Warsh served as the youngest Fed board member in 2006 and was the Fed's key liaison to Wall Street during the 2008 financial crisis before stepping down in 2011
• Trump has repeatedly criticized Powell over interest rate decisions, calling for rate cuts to save 'hundreds of billions of dollars' while Powell held rates at 4.25% to 4.5% to assess tariff impacts
• The nomination requires Senate confirmation and would give Warsh direct influence over interest rate decisions and the central bank's inflation-fighting efforts

Summary

President Trump announced Friday his intention to nominate Kevin Warsh as Federal Reserve Chair to replace Jerome Powell when his term expires in May. Trump praised Warsh on Truth Social, stating he will be remembered as "one of the GREAT Fed Chairmen, maybe the best."

Key Figures

Kevin Warsh: Former Morgan Stanley banker who became the youngest Fed board member in 2006. He served as the Fed's primary Wall Street liaison during the 2008 financial crisis and as economic advisor to President George W. Bush before resigning in 2011.

Jerome Powell: Current Fed Chair nominated by Trump in 2017. Powell held the benchmark rate at 4.25%-4.5% recently before lowering rates, adopting a wait-and-see approach to assess tariff impacts.

Market Context

The nomination arrives during extraordinary turbulence for the Federal Reserve:

• The Justice Department is conducting a criminal probe into Powell
• The Supreme Court is examining limits on Fed independence
• Trump has publicly criticized Powell over interest rate decisions, calling for rate cuts that could save "hundreds of billions of dollars"
• Relations between Trump and Powell have deteriorated, with Trump using mocking nicknames

Implications

Warsh's potential confirmation would place him in one of the most powerful U.S. economic policymaking positions, with direct control over interest rates and inflation policy. The Federal Reserve's decisions significantly impact Americans' daily affordability and borrowing costs. Warsh has been a vocal critic of current Fed leadership, positioning himself as an alternative voice on monetary policy as he emerged as Powell's likely successor.

Senate confirmation is required for the appointment.