Kevin Warsh, a former US Federal Reserve Governor and currently a Visiting Fellow at the Hoover Institution at Stanford University, has been selected by President Trump to become the next Fed Chair. Warsh received his BA at Stanford and earned his JD from Harvard Law School. He also worked as an investment banker at Morgan Stanley.
In a post on Truth Social, President Trump revealed the selection, stating he has known Warsh for a long time and he has no doubt he will “go down as one of the GREAT Fed Chairmen, maybe the best.”
“On top of everything else, he is “central casting,” and he will never let you down. Congratulations, Kevin!”
Trump has criticized current Fed Chairman Jerome Powell, calling him “too slow” in lowering interest rates. Markets were recently rattled when it was announced that the Fed Chair was under investigation by the US Department of Justice for possible violations regarding an ongoing update to the Fed’s DC offices.
Warsh, who was once frequently described as a Hawk, has echoed Trump’s request to lower interest rates. He believes market dynamics counter prevailing concerns about hot inflation and advocates reducing rates. Warsh is also a crypto believer and supporter of Bitcoin and will align with the administration’s pro-digital-asset policy.
Recently, Chairman Powell responded to a question about advice he would like to give to the incoming Chair. He advised any new pick not to engage in politics and to focus on the Fed’s mandate. Some observers and policymakers have been concerned about removing the Fed’s independence in its monetary policy decisions. Republican Senator Thom Tillis posted on X earlier today that Warsh is a qualified nominee with a deep understanding of monetary policy. At the same time, he reaffirmed his decision to oppose any confirmation of any Fed Nominee until the Department of Justice’s investigation into Chair Powell was resolved.
Even though Warsh may be inclined to pursue lower interest rates, any change is driven by the Federal Open Market Committee’s consensus. At the meeting this week, only two Committee members dissented with the decision to hold rates steady