Trump Nominates Kevin Warsh to Lead the Fed, Signaling Faster Rate Cuts

Overview

• Trump named former Fed governor Kevin Warsh to succeed Jerome Powell in May, a move that requires Senate confirmation.
• Reporting describes Warsh’s selection as a bid to speed interest-rate cuts, though futures still price only two quarter-point reductions in 2026.
• Senator Thom Tillis said he will support the nomination only if the administration drops the Justice Department’s lawsuit against Powell.
• U.S. markets closed slightly lower on the announcement, with investors showing limited concern and viewing Warsh as less radical than other contenders.
• Warsh has criticized the Fed’s models and balance-sheet growth and has advocated a wholesale-only digital dollar while expressing skepticism about private stablecoins.