Trump Nominates Kevin Warsh for Federal Reserve Chair, Calls Pick Out of 'Central Casting'

Donald Trump has nominated Kevin Warsh to serve as the next chair of the Federal Reserve, naming him as the successor to Jerome Powell after a months-long and closely watched selection process.

The president, 79, announced the decision on Friday, Jan. 30 in a post on Truth Social, praising Warsh as a longtime confidant and signaling confidence in his leadership of the central bank.

“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” Trump wrote.

“On top of everything else, he is ‘central casting,’ and he will never let you down,” Trump added. “Congratulations Kevin!”

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The nomination concludes a competitive search overseen by Treasury Secretary Scott Bessent that at one point included more than a dozen candidates. Finalists also included National Economic Council Director Kevin Hassett, BlackRock executive Rick Rieder and current Fed Governor Christopher Waller, CNN reported.

Warsh, 55, previously served as a Federal Reserve governor from 2006 to 2011 after being appointed by former President George W. Bush. He was the youngest Fed governor in history at the time of his appointment and played a key advisory role to then-chair Ben Bernanke during the 2008 financial crisis.

If confirmed, Warsh would become the second consecutive non-economist to lead the Federal Reserve. He holds a law degree from Harvard and is married to Jane Lauder, an heir to the Estée Lauder cosmetics fortune.

His nomination comes at a volatile moment for the Fed, which has faced increasing political pressure amid stubborn inflation, slowing job growth and rising government borrowing.

Though Trump previously chose Powell to lead the Fed in 2017, he has repeatedly criticized Powell for not making aggressive interest-rate cuts during both of his terms in office, The New York Times reported. Trump’s also accused the central bank of mismanagement, including over cost overruns tied to the Fed’s Washington, D.C., headquarters renovation.

Powell’s four-year term as chair ends May 23, though he still has two years remaining in his term as a Fed governor. Chairs historically step down from the board after leaving the top post, but Powell has not indicated whether he plans to do so this time.

Warsh has been an outspoken critic of the modern Fed, arguing that the institution has expanded beyond its mandate and damaged its credibility. In a CNBC interview last summer, he called for “regime change” at the central bank, saying the “credibility deficit lies with the incumbents.”

He has also criticized the Fed’s quantitative easing programs and regulatory framework, arguing that shrinking the central bank’s $6.5 trillion balance sheet could create room for lower interest rates, Axios reported.

At the same time, Warsh has expressed confidence that Trump’s tax and deregulatory policies are fueling a coming economic growth surge according to Axios, and argued in a November essay that “the U.S. is poised to grow faster than any other major economy” and that the Federal Reserve should allow that expansion to continue rather than act to restrain it.

Even so, despite his public critiques, market analysts have suggested Warsh would maintain independence from the White House if confirmed, The Times reported. That question has taken on added urgency as Trump has repeatedly pressured the Federal Reserve to cut rates and administration officials have discussed proposals that would increase White House influence over monetary policy decisions.

Those concerns will surely carry over to Warsh’s confirmation process, which already is shaping up to be potentially difficult. Sen. Thom Tillis has said he plans to block Fed nominations until a Justice Department investigation into the Fed’s construction project is completed, CNBC reported.