Trump Says "Kevin Warsh Is the Right Choice for Fed Chairman"

Trump Announces Intention to Nominate on Social Media
Nominee Must Win Majority of 12-Member FOMC
DOJ Investigation into Fed Poses Additional Risk

President Donald Trump has announced his intention to nominate Kevin Warsh as the next Chairman of the Federal Reserve (Fed).

President Trump has announced his intention to nominate Kevin Warsh as the next Federal Reserve Chairman. Photo by Reuters Yonhap News

On the 30th (local time), President Trump stated through his social media platform, Truth Social, "I have known Kevin for a long time, and I have no doubt that he will be remembered as one of the greatest, if not the greatest, Fed Chairs in history." He added, "He is the quintessential candidate and will never disappoint."

Warsh, who served as a Fed Governor from 2006 to 2011 and has acted as an economic policy advisor to President Trump, is set to succeed Jerome Powell, whose term as Fed Chair ends in May.

Last year, Warsh publicly advocated for interest rate cuts, aligning himself with President Trump-a stance that contrasts with his previous reputation as an "inflation hawk." During his tenure at the Fed, Warsh supported raising rates to guard against inflation. However, last year, he suddenly agreed with President Trump's view that rates could go even lower.

Donald Trump, President of the United States, announced on the 30th (local time) through a post on his social media platform, Truth Social, that he intends to nominate Kevin Warsh as the next Chairman of the Federal Reserve. Truth Social

However, Bloomberg News explained that Warsh's nomination does not mean the Fed's policy will change immediately. Interest rates are decided by a majority vote of the 12-member Federal Open Market Committee (FOMC), which consists of seven Fed Governors and five regional Federal Reserve Bank presidents. After cutting rates three times in a row at the end of last year, the FOMC held rates steady on the 29th, and the current rate remains much higher than the level President Trump desires.

Bloomberg News also projected that Warsh's Senate confirmation could become complicated due to a recent Department of Justice (DOJ) investigation into the Fed. On the 9th, the Fed received a subpoena from Congress regarding last year's building renovation project under Chair Powell. Powell issued a statement criticizing the investigation, and several Republican lawmakers have vowed to block all Fed nominations until the legal issues are resolved.

President Trump has been at odds with Powell since he took office in 2018. In 2020, Trump even expressed regret for choosing Powell over Warsh. Since leaving the Fed, Warsh has criticized the institution, arguing that "systemic change is needed."

Previously, Warsh was appointed as the youngest Fed Governor in 2006. He is among the wealthiest figures at the Fed, and his wife, Jane Lauder, is the daughter of Ronald Lauder-a major Republican donor and member of the Estee Lauder family. Ronald Lauder, a Wharton School classmate of President Trump, donated $5 million to the Trump-aligned super PAC (MAGA) in March.