Overview
- President Donald Trump has nominated former Fed governor Kevin Warsh to succeed Jerome Powell when Powell’s term ends in May.
- Senator Thom Tillis said he will oppose any Fed-chair nominee until the Powell investigation is fully and transparently resolved, a stance that can stop the nomination in committee.
- Trump called Warsh highly qualified and forecast Senate approval, while saying Warsh made no commitment on cutting interest rates.
- Democrats, including Senator Elizabeth Warren, argue the move threatens the central bank’s independence, as a separate Trump bid to remove Governor Lisa Cook is before the Supreme Court.
- Markets swung on the news, with Bitcoin falling below $80,000 and broader assets wobbling, even as some analysts described investor relief; German commentators warned that a politicized Fed and a weaker dollar could further strain exports.