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Trump Picks Kevin Warsh to Lead the Federal Reserve

The former Fed governor now faces a close Senate confirmation shaped by scrutiny of Jerome Powell.

Overview

  • President Trump announced Kevin Warsh as his choice to replace Jerome Powell, with the handover expected in mid‑May if the Senate confirms him.
  • Warsh, 55, previously served on the Fed Board from 2006 to 2011 and was a key liaison to Wall Street during the 2008 financial crisis.
  • Republican support is narrow, and Senator Thom Tillis says he will vote against moving the nomination forward until the Justice Department inquiry into Powell concludes.
  • Once known as a policy hawk, Warsh has recently signaled openness to rate cuts, aligning more closely with the administration’s push for lower borrowing costs.
  • Initial market reaction was mixed, with the dollar strengthening and U.S. stocks easing as investors assessed Warsh as dovish but not inclined toward aggressive cuts.