President Donald Trump formally nominated former Federal Reserve governor Kevin Warsh as Fed chair, setting up a Senate confirmation battle amid heightened scrutiny of the central bank’s independence.
By yourNEWS Media Newsroom
President Donald Trump announced Friday that he is nominating Kevin Warsh to serve as chairman of the Board of Governors of the Federal Reserve System, bringing an end to weeks of speculation over who would succeed Jerome Powell when Powell’s term as chair expires in May.
“I am pleased to announce that I am nominating Kevin Warsh to be the CHAIRMAN OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM,” Trump wrote in a post on Truth Social, praising Warsh as “one of the GREAT Fed Chairmen, maybe the best.”
Warsh, a former Federal Reserve governor and increasingly vocal critic of the central bank, would assume leadership at a moment of sustained pressure from Trump for faster interest-rate cuts. The Federal Reserve held its benchmark short-term rate steady this week following three consecutive reductions last year, a decision that again drew criticism from the president.
Warsh served on the Fed’s Board of Governors from 2006 to 2011, working closely with then-Chair Ben Bernanke during the 2008–09 financial crisis. He resigned before completing his term and has since called for sweeping changes at the institution, including what he has described as “regime change” in how monetary policy is conducted.
In announcing the nomination, Trump highlighted Warsh’s current academic and professional roles, noting that he is the Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution and a lecturer at Stanford University’s Graduate School of Business. Trump also said Warsh is a partner with investor Stanley Druckenmiller at Duquesne Family Office LLC.
According to Trump’s statement, Warsh previously worked in mergers and acquisitions at Morgan Stanley and served in the George W. Bush White House from 2002 to 2006 as a senior economic policy aide and executive secretary of the National Economic Council.
The nomination now heads to the Senate, where confirmation proceedings are expected to be contentious. Sen. Thom Tillis, R-N.C., a member of the Senate Banking Committee, has said he will block Federal Reserve nominees until the resolution of a Justice Department investigation involving the central bank. That probe centers on Powell’s congressional testimony related to renovations of the Fed’s headquarters, an inquiry Powell has characterized as a pretext to pressure the Fed into lowering rates.
Warsh had emerged as a leading contender alongside Kevin Hassett, director of the White House National Economic Council. Treasury Secretary Scott Bessent oversaw the search process and presented Trump with additional finalists, including Rick Rieder of BlackRock and Fed Governor Christopher Waller, whom Trump appointed to the board in 2020.
Since Powell’s confirmation as chair in 2018 during Trump’s first term, the president has repeatedly urged the Fed to pursue more aggressive rate cuts. Even after three reductions late in 2025, Trump continued pressing for lower rates while also criticizing Powell over cost overruns associated with the Fed’s Washington headquarters renovation.
Warsh has signaled a more confrontational approach toward the institution he is now poised to lead. In a CNBC interview last summer, he said, “The credibility deficit lies with the incumbents that are at the Fed, in my view,” arguing for a fundamental overhaul of the central bank’s policy framework.
The nomination arrives as questions about Federal Reserve independence intensify. Trump allies have floated proposals that would increase White House oversight of the central bank or require consultation with the president on interest-rate decisions. At the same time, Powell has said a Justice Department subpoena tied to the renovation project was intended to pressure the Fed into easing policy.
Another unresolved issue is Powell’s future role. While Fed chairs have historically stepped down from the board after losing the top position, Powell still has two years remaining in his term as a governor and could choose to stay. His decision may be influenced by an ongoing Supreme Court case involving Trump’s effort to remove Governor Lisa Cook, a dispute that could help clarify presidential authority over Fed board members.
Despite the leadership change, financial markets have so far priced in limited near-term impact. Traders currently expect no more than two additional rate cuts this year, with the federal funds rate settling near 3 percent, roughly in line with policymakers’ estimates of the long-run neutral rate.
Trump’s nomination of Warsh concludes what officials described as an extensive search that initially included roughly 11 candidates before being narrowed through interviews led by Bessent, culminating in Trump’s decision to move forward with his choice.
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