Trump Nominates Kevin Warsh to Lead the Fed as Oil Shock Clouds Rate-Cut Push

Confirmation would not give him unilateral power to lower borrowing costs because Fed policy shifts require a majority vote.

Overview

Warsh, a former Fed governor, has been formally nominated to succeed Jerome Powell when Powell’s term ends on May 15, according to the White House.
Republicans who control the Senate Banking Committee are preparing confirmation hearings, and several members have described Warsh as well qualified.
President Trump has said support for reducing interest rates is a condition for any Fed chair nominee, signaling expectations for easier policy.
Warsh has argued that AI-driven productivity could permit rate cuts without reigniting inflation, a view met with skepticism from officials including Michael Barr and Cleveland Fed President Beth Hammack.
Escalating conflict involving Iran has lifted oil and gasoline prices, with policymakers like Neel Kashkari flagging new inflation risks and Goldman Sachs warning that a sustained oil rise could push annual CPI toward 3%.