Trump Nominates Former Fed Governor Kevin Warsh to Lead Federal Reserve as Powell’s Term Nears End

President Donald Trump announced last week that he has selected former Federal Reserve Governor Kevin Warsh to serve as the next chair of the Federal Reserve, once current Chair Jerome Powell’s term expires in May. The decision ends months of speculation over Trump’s preferred successor and signals a renewed push for looser monetary policy.

Warsh served on the Fed’s Board of Governors from 2006 to 2011, including during the global financial crisis, and was previously an investment banker at Morgan Stanley as well as a senior official in the George W. Bush administration. Trump praised Warsh’s credentials and said he expects him to deliver a lower interest rate environment if confirmed.

While Warsh is expected to enjoy broad support among Senate Republicans, his confirmation path may not be seamless. Sen. Thom Tillis (R-N.C.) has indicated he will withhold support for Federal Reserve nominees until a Justice Department investigation involving Powell is resolved, raising questions about whether Warsh’s nomination could be delayed in the Senate Banking Committee. With a narrow partisan split on the panel, a single Republican defection could complicate the process.

Still, Senate Banking Committee Chair Tim Scott (R-S.C.) praised Warsh’s prior Fed experience and said the committee would conduct a timely review. In contrast, ranking member Elizabeth Warren (D-Mass.) criticized the nomination, arguing it reflects an effort to undermine the central bank’s independence.

If confirmed, Warsh would take over amid heightened political pressure on the Federal Reserve, as Trump has repeatedly criticized the central bank for not cutting rates aggressively enough. Observers expect Powell to step down from the Board once his term as chair ends, making Warsh’s confirmation a pivotal moment for the future direction of U.S. monetary policy.