Donald Trump has nominated Kevin Warsh to serve as the next Federal Reserve chair, selecting an inflation hawk who aligns with his criticisms of the bank.
‘I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best. On top of everything else, he is “central casting,” and he will never let you down,’ Trump posted on social media.
Warsh, a Stanford scholar, served on the Fed’s Board of Governors from 2006 until 2011, playing a crucial role in rescuing Wall Street during the financial crisis. He was appointed at age 35, making him the youngest governor in the bank’s history.
If confirmed by the Senate, he would succeed Jerome Powell whose term ends on May 15.
Powell’s tenure has been marked by clashes with Trump over his refusal to cut interest rates. The dispute came to head on January 11 when Powell revealed that he had been subpoenaed by the Justice Department.
The typically reserved Fed chair issued an extraordinary statement accusing Trump of weaponizing the DOJ against him over interest rates. The President denied ordering the probe into the $2.5 billion renovation of the Fed’s headquarters.
Warsh has said that he believes the Fed should cut rates faster.
Powell slashed rates three times last year to shield the economy against an unexpected cooldown in the jobs market, but the bank held rates steady this week in a range between 3.5 and 3.75 percent. Trump has demanded rates go as low as 1 percent.
President Donald Trump announced early on Friday, January 30, 2026 that Kevin Warsh, a former governor of the US Federal Reserve, is his pick for the next Chairman of the Fed
It comes after a year-long public feud with current Chairman Jerome Powell (right), whom Trump has called names and accused of costing the US billions for refusing to cave to his pressure to lower interest rates
Warsh will have to contend with pressures from the President, trade wars, AI-related labor uncertainty and cryptocurrencies.
At the premiere of First Lady Melania’s film at the Trump-Kennedy Center on Thursday night, Trump was excited to preview the impending announcement for his pick to head the Fed for the next four years.
He said on Thursday night that he had made up his mind and that his pick was ‘somebody that is very respected, somebody that’s known to everybody in the financial world.’
‘A lot of people think that this is somebody that could have been there a few years ago,’ he added, sparking speculation it could be Warsh considering he was a finalist for the role in 2017.
The 55-year-old is a scholar and lecturer at Stanford, a member of the international Group of 30 and a member of the Panel of Economic Advisers at the Congressional Budget Office.
Some analysts speculate Warsh’s nomination is a welcome one due to his Fed experience and Wall Street’s view that he won’t always do Trump’s bidding.
But that doesn’t mean he’s a shoe-in.
Republican Senator Thom Tillis of North Carolina, though agreeing with Warsh’s qualifications for the role, floated blocking any nominee until the investigation into Powell is done.
The Justice Department has an ongoing criminal investigation into Powell regarding his June 2025 congressional testimony about a $2.5 billion renovation of Fed’s headquarters and whether he lied about project costs.
‘Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable,’ the retiring senator wrote on X.
‘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,’ he insisted.
Current Federal Reserve Chairman Jerome Powell’s term is up in May 2026
Trump has tried, and failed, to influence Powell on how to change rates at the Fed.
He has frequently attacked the Chairman on social media, calling him ‘stupid,’ a ‘jerk,’ a ‘major loser,’ a ‘knucklehead’ and ‘Mr. Too Late.’
Most recently the president called Powell a ‘moron’ this month for holding interest rates steady and claiming he is costing the US ‘hundreds of billions’ in interest and expenses.
Along with Warsh, the other consistently mentioned contenders were White House National Economic Council Director Kevin Hassett, current Fed Governor Christopher Waller and BlackRock executive Rick Rieder.
Hassett, as a longtime Trump economic adviser, was largely seen as a top-two pick along with Warsh.
