Fri, 30 Jan 2026

Fri, 30 Jan 2026 Trump picks Kevin Warsh to lead the US Federal Reserve

The 55-year-old economist had been considered for Fed chair during Trump's first term.
US President Donald Trump has nominated Kevin Warsh, a former Fed governor and longtime critic of the central bank, as his pick to lead the Federal Reserve when Chairman Jerome Powell's term ends in May. Warsh was considered for chair during Trump's first term but was passed over, and his appointment comes amid growing concerns about the Fed's independence. The nomination still needs Senate approval and could face delays. Warsh has been critical of the Fed's reliance on data and its use of assets on its balance sheet, and he has called for "regime change" in the central bank. As a governor from 2006 to 2011, Warsh was seen as hawkish, favoring higher interest rates, but now he is expected to support lower rates in the near term. The appointment comes after Trump's increasing attacks on Powell, who has been critical of the President's push for rate cuts. The Department of Justice has also launched a probe into Powell's testimony about Fed building renovations. Warsh's nomination has been met with relief from some investors, but others are concerned that his appointment could erode the Fed's independence. Warsh is a 55-year-old economist and fellow at the Hoover Institution, and he serves on the board of courier UPS. He has close family connections to Trump's orbit through his wife Jane Lauder, whose father Ronald Lauder is a long-time Trump donor and ally. Trump has also taken aim at other Fed officials, including Governor Lisa Cook, whom he wants to remove, and White House economic adviser Kevin Hassett was seen as another contender for the top job. The appointment still needs Senate approval and could face delays.
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