Kevin Warsh has been nominated by Donald Trump to be the new head of the US central bank, the Federal Reserve. Warsh, who served as a Fed governor from 2006 to 2011, had re-emerged in recent weeks as a potential choice for the top job as speculation grew over who would replace the under-fire incumbent, Jerome Powell. The appointment is seen as a key moment for the Fed's independence, following Trump's increasing attacks on Powell in recent months.
Powell has angered Trump by not cutting interest rates quickly enough, and federal prosecutors recently opened a criminal investigation over testimony Powell gave to the Senate about renovations to Fed buildings. Announcing the nomination on Truth Social, Trump praised Warsh, stating he will go down as one of the GREAT Fed Chairmen, maybe the best.
Warsh, a 55-year-old economist affiliated with the right-leaning Hoover Institution, has a history of Fed criticism. He is known for having a hawkish reputation, favoring higher interest rates and addressing inflation seriously. However, as a Fed chair candidate, he has called for regime change within the institution and now appears supportive of lowering interest rates.
His ties to Trump's circle also run deep; he is married to Jane Lauder, whose family is associated with Estee Lauder, and his father-in-law is a long-time Trump donor. Warsh's appointment is pending Senate approval, which could be delayed amid opposition from lawmakers concerned about the current Fed chair’s position.
As the news leaked, the financial markets reacted, with the dollar strengthening slightly and gold prices dropping. Market observers view Warsh as a credible choice based on his previous considerations for the role, albeit with ongoing scrutiny over his potential alignment with Trump’s agenda.
Powell has angered Trump by not cutting interest rates quickly enough, and federal prosecutors recently opened a criminal investigation over testimony Powell gave to the Senate about renovations to Fed buildings. Announcing the nomination on Truth Social, Trump praised Warsh, stating he will go down as one of the GREAT Fed Chairmen, maybe the best.
Warsh, a 55-year-old economist affiliated with the right-leaning Hoover Institution, has a history of Fed criticism. He is known for having a hawkish reputation, favoring higher interest rates and addressing inflation seriously. However, as a Fed chair candidate, he has called for regime change within the institution and now appears supportive of lowering interest rates.
His ties to Trump's circle also run deep; he is married to Jane Lauder, whose family is associated with Estee Lauder, and his father-in-law is a long-time Trump donor. Warsh's appointment is pending Senate approval, which could be delayed amid opposition from lawmakers concerned about the current Fed chair’s position.
As the news leaked, the financial markets reacted, with the dollar strengthening slightly and gold prices dropping. Market observers view Warsh as a credible choice based on his previous considerations for the role, albeit with ongoing scrutiny over his potential alignment with Trump’s agenda.
