Fri, 30 Jan 2026

Fri, 30 Jan 2026 Will Trump's pick to lead US central bank get him the change he wants?

Opinion is divided over whether Warsh will align with the US president's views over how the Federal Reserve should be run.

* Donald Trump has nominated Kevin Warsh as his choice to replace Jerome Powell as Federal Reserve chairman.
* Warsh is a conservative economist who was passed over by Trump during his first term, but has since expressed views that seem to align with Trump's on monetary policy.
* Despite initial concerns about Warsh's independence, many in financial circles see him as a responsible pick and are cautiously optimistic about the nomination.
* Analysts expect Warsh not to change much at the Fed, given the central bank's current trajectory of cutting interest rates.
* Warsh has accused the Fed of "mission creep" and wants to reduce its role in bank regulation and cut back on studying issues like climate change.
* His views on reducing the Fed's balance sheet could lead to higher borrowing costs, which would be at odds with Trump's wishes.
* Some experts believe that while Warsh may seem independent, his thinking on monetary policy has evolved to align closely with Trump's.
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