Trump Taps Kevin Warsh for Fed Chair, Blasts Powell Over Rates and Security
President Donald Trump announced Friday that he has selected economist Kevin Warsh to serve as the next chairman of the Federal Reserve, setting the stage for a dramatic shift in the central bank’s leadership. Warsh, a longtime critic of current Fed Chair Jerome Powell, will need Senate confirmation to assume the role when Powell’s term expires in May.
“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 posted on Truth Social. “On top of everything else, he is ‘central casting,’ and he will never let you down.”
Warsh currently holds roles at the Hoover Institution, teaches at Stanford’s business school, and is a partner at Duquesne Family Office. He previously served as an economic adviser to President George W. Bush and became the youngest Federal Reserve governor in history when he joined the board in 2006 at age 35. He stepped down in 2011 after playing what the Wall Street Journal called a “crucial behind-the-scenes role” during the 2008 financial crisis.
Trump’s selection of Warsh comes amid a renewed public feud with Powell. The president has repeatedly criticized Powell for keeping interest rates elevated, accusing him of slowing economic growth and harming U.S. national security. Trump has also expressed frustration with Powell’s handling of inflation and threatened to remove him from the Fed chairmanship more than once during his second term.
On Thursday, Trump again accused Powell of “suffocating the economy” by refusing to slash rates, arguing that the Fed’s current posture is undermining American competitiveness abroad. He echoed that message Friday while defending his decision not to nominate National Economic Council Director Kevin Hassett for the role.
“There was great speculation that highly respected Kevin Hassett was going to be named Chairman of the Fed, and a great Chairman he would have been,” Trump wrote. “But quite honestly, he is doing such an outstanding job working with me and my team at the White House, that I just didn’t want to let him go.”
While Warsh’s nomination will face scrutiny in the Senate, Trump’s allies praised the move as a bold course correction. Warsh has long advocated for tighter oversight of central banking powers and was among the few economists who questioned the Fed’s post-crisis interventionism.
Meanwhile, Powell’s leadership remains under fire from multiple fronts. The Department of Justice recently opened a criminal investigation into statements Powell made to the Senate concerning a $450 million renovation at the Fed’s main building. The controversy has further weakened Powell’s standing, even as he insists the renovations were necessary for security and modernization.
The Supreme Court is also set to hear a case questioning whether Trump can unilaterally remove Fed Governor Lisa Cook, another Powell ally, in what could be a defining moment for the balance of power between the White House and the central bank.
If confirmed, Warsh would become the first Trump-appointed Fed chair and would be expected to steer monetary policy more in line with the White House’s push for lower rates, dollar competitiveness, and tighter fiscal discipline.