Trump Nominates Kevin Warsh to Lead Fed, Emphasizes Push for Lower Rates

Overview

• President Trump told NBC that Warsh wants to cut interest rates and would not have been chosen if he sought increases.
• The Federal Reserve cut rates three times in 2025 and paused in January 2026 as officials weighed inflation risks and labor strength.
• Senator Thom Tillis has opposed moving Fed nominations until the Department of Justice resolves its investigation into Jerome Powell.
• The White House effort to remove Governor Lisa Cook and a probe of Powell over headquarters renovation costs have intensified concerns about political pressure on the Fed.
• ECB President Christine Lagarde called Warsh’s nomination very welcome, and former BoJ director Hiroshi Nakaso said Warsh’s experience suggests he could maintain independence if confirmed.