Everything you need to know about Kevin Warsh, Trump's pick to lead the Federal Reserve

• Warsh served as a Fed governor during the 2008 financial crisis but later became a critic, voting against the second round of quantitative easing and warning that large-scale asset purchases and near-zero rates risk distorting markets
• Multiple FOMC members currently oppose further rate cuts until inflation clearly moves toward the 2% target, with officials projecting only one cut in 2026 and one in 2027, limiting Warsh's ability to deliver Trump's desired aggressive easing
• Senate confirmation faces complications as Republican Sen. Thom Tillis vowed to block Fed nominees until a Justice Department investigation into the Fed's headquarters renovation is resolved, though Warsh is expected to have broad bipartisan support

Summary: Trump Nominates Kevin Warsh as Federal Reserve Chair

Key Appointment Details:

President Donald Trump has nominated Kevin Warsh to lead the Federal Reserve, marking a significant philosophical shift from current Chair Jerome Powell's consensus-driven approach. Warsh will fill the seat currently occupied by Stephen Miran, whose term expires Saturday.

Warsh's Background:

• Fed Governor from 2006-2011, serving during the global financial crisis
• Among the youngest Fed board members ever appointed (by President George W. Bush)
• Currently a distinguished visiting fellow at Stanford University
• Previously worked at Morgan Stanley and served in the Bush White House
• Stanford graduate with Harvard law degree

Policy Stance:

Warsh emerged as a Fed critic post-financial crisis, warning against large-scale asset purchases and near-zero rates. He voted against the second round of quantitative easing, arguing such measures distort markets and undermine price stability. He has criticized the Fed for "mission creep" and called for "regime change" in a 2024 CNBC interview.

Market Implications:

Contrary to Trump's desire for aggressive rate cuts, Warsh may prove more hawkish than expected. The FOMC currently projects only one rate cut in 2026 and another in 2027, aligned with market expectations of two cuts this year and none next. Analysts at Evercore ISI view Warsh as a "pragmatist not an ideological hawk," suggesting he could deliver two to three cuts in 2025.

Confirmation Challenges:

Senate confirmation faces potential obstacles from Republican Sen. Thom Tillis, who has vowed to block Trump Fed nominees until a DOJ investigation into the Fed's headquarters renovation is resolved. However, analysts expect broad bipartisan support for Warsh's nomination.