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Trump Nominates Kevin Warsh to Lead the Fed

Warsh has criticized the Fed’s swollen balance sheet, signaling a leaner approach.

Overview

  • The White House nominee faces a Senate vote expected before Jerome Powell’s final day on May 15.
  • Warsh served on the Federal Reserve Board from 2006 to 2011 and voted on policy during the financial crisis.
  • He has voiced distaste for the Fed’s roughly $6.7 trillion in assets after years of large-scale bond buying.
  • Yahoo Finance warns the pick could test a rally powered by AI advances and record S&P 500 share buybacks.
  • Cutting the Fed’s asset holdings tends to drain market liquidity and can lift longer-term borrowing rates.