U.S. President Donald Trump has announced he will nominate former Federal Reserve governor Kevin Warsh to serve as the next chair of the Federal Reserve, replacing Jerome Powell when Powell’s term ends in May 2026.
The nomination, which requires Senate confirmation, signals a major shift in U.S. monetary leadership. Trump has repeatedly criticized Powell for not cutting interest rates aggressively enough and has made lowering borrowing costs a central economic priority.
Warsh, 55, previously served on the Fed’s board from 2006 to 2011 and was the youngest governor in the institution’s history. He later became a fellow at the Hoover Institution and a lecturer at Stanford’s Graduate School of Business. Though once known as a “hawk” who favored higher interest rates to curb inflation, Warsh has more recently voiced support for lower rates.
Analysts say Warsh’s appointment could bring the Fed closer to the White House, raising concerns about central bank independence — long viewed by economists as crucial for controlling inflation. If confirmed, Warsh would still need the support of other members of the Fed’s rate-setting committee, meaning sweeping rate cuts are not guaranteed.
Markets are watching closely, as aggressive rate reductions perceived as politically driven could trigger higher long-term borrowing costs, potentially offsetting the benefits Trump is seeking.