US President Donald Trump has nominated former Federal Reserve Governor Kevin Warsh to serve as the next chair of the US central bank, selecting a longtime Fed critic to succeed Jerome Powell when his term ends in May.
Announcing the decision on social media, Trump praised Warsh as exceptionally qualified and expressed confidence that he would deliver a major shift in monetary policy. The nomination, which requires confirmation by the US Senate, is seen as a significant step in Trump’s efforts to reshape the Federal Reserve and exert greater influence over interest rate policy.
Kevin Warsh, 55, previously served as a Federal Reserve governor from 2006 to 2011 and played a key role during the global financial crisis. Currently a fellow at Stanford University’s Hoover Institution, Warsh has repeatedly argued for steep interest rate cuts, a slimmer Fed balance sheet, and a broad overhaul of central bank operations. He has also criticized the Fed for underestimating productivity gains driven by artificial intelligence.
Financial markets reacted swiftly to the announcement, with global stocks edging higher, the US dollar strengthening, and gold prices falling, reflecting investor expectations that Warsh may support lower borrowing costs while maintaining a cautious approach to aggressive easing.
The nomination could face challenges in the Senate, where approval remains uncertain amid political tensions. Senator Thom Tillis, a Republican member of the Senate Banking Committee, has stated he will oppose any Federal Reserve nominee until a Justice Department inquiry involving Chair Jerome Powell is resolved. With a closely divided committee, Warsh’s confirmation process is expected to be closely contested.
Supporters argue Warsh would reinforce the Fed’s focus on its core mandate of price stability and economic growth. Critics, however, warn that Trump’s repeated pressure on the central bank risks undermining its long-standing independence, a cornerstone of global financial stability.
If confirmed, Warsh would inherit a Federal Reserve that has cut interest rates three times in 2025 and currently holds them steady amid signs of stable growth and easing inflation. His leadership is expected to shape US monetary policy at a critical juncture for both domestic and global markets.
